FIIs Activity
FIIs sold over ₹3,000 crore in the cash market and added fresh net index short positions in F&O, signaling continued bearish bias.
Global Sentiment
US inflation data came in below expectations, triggering a strong rally in US markets. The S&P 500 VIX is near 25, indicating low fear and expectations of stability. This positive global sentiment could fuel short covering rallies in Indian equities.
Domestic Macro Update
India’s CPI inflation came in above consensus but still below the RBI’s comfort level. The market reaction was muted, and we expect the RBI to consider a 25 bps rate cut by December if trends hold.
Market Outlook
Any short covering rally should be seen as a selling opportunity ahead of the crucial 15 August event. The outcome could significantly impact the India–US trade deal and broader sentiment.
Our Stance
Remain selective, focus on fundamentally strong stocks, and maintain tight stop losses. Avoid chasing rallies; use them to build cautious short positions.