Nifty trade sentiment at ‘Buy on dips’ amidst FIIs short covering and sector opportunities

By Manojh Vayalar

The December series Nifty futures started with a premium of around 100 points for the current month. The Nifty has rolled around 73% and Bank Nifty around 80%. For the Index futures, FIIs have reduced the short positions to 40% as of yesterday from 56% at the start of the December series.

The index is now in a ‘Buy on Dips’ mode till 21000 is not breached on closing basis, for the December series.
21000-21200 might be the immediate support and only a decisive close below it might bring in further downside.

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Q2 earnings, global trends, trading activity of foreign investors to drive market movement- Analysts

The ongoing quarterly earnings report card of corporates, global trends and trading activity of foreign investors are key factors to drive the momentum in the equity markets this week, analysts said. Moreover, markets would also focus on global oil benchmark Brent crude and the rupee-dollar trend.

“On the domestic front, the upcoming release of Q2 earnings report is expected to have a significant influence on market sentiment. If FIIs (Foreign Institutional Investors) shift to net buying, it could further propel the market’s upward movement,” Swastika Investmart Ltd Head of Research Santosh Meena said.

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