📉 FIIs Activity
Foreign investors sold ₹1,200+ crore in cash yesterday. In derivatives, they cut down some net index shorts but simultaneously built up significant net index call shorts. This shows FIIs are cautious at higher levels and hedging against near-term upside risk.
🌍 Global Sentiment
Global mood is buoyant with expectations of a Fed rate cut coming sooner than later. The Nasdaq has closed positive for 9 straight sessions, reflecting strong optimism in US tech stocks and a broader risk-on environment. This global strength is lending support to Indian markets despite FII caution.
📊 Technical View
The Nifty structure remains strong as long as it holds 24,750 on closing basis. This level acts as a key support zone. On the upside, momentum suggests a possible move towards 25,500 this week, provided global cues remain supportive and FII selling doesn’t intensify.
📈 Market Momentum
The market’s undertone is decisively bullish. Broader participation is visible, with midcaps and smallcaps outperforming. Sector rotation continues, with stock-specific rallies emerging every session. This undercurrent shows domestic liquidity is still driving the market higher, cushioning FII outflows.
🎯 Our Strategy
We maintain a positive stance. Traders should look for opportunities in mid and small-cap names showing strong volumes and breakouts. However, risk management is crucial—carry positions only with tight stop-losses given FIIs’ cautious stance and possible volatility near lifetime highs.
