FIIs reverse bearish stance, long position rises to 34%; exercise caution but stick to 18300 target on Nifty

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Key Points

FIIs reverse their trend in April, with 34% of their index futures positions being longs..

With longs constituting 34% of their index future positions as on last Thursday, FIIs have come off a long way from the acutely bearish stance that they had adopted for almost three months on the trot, to the point that towards the end of March, shorts constituted 92.25% of the their index future positions..

Stock futures do not suggest a directional bias with 38.2% stocks witnessing long addition, while 37.7% witnessed short addition..

Incidentally, the Nifty 50 stocks also painted a similar picture with 46% and 44% on the long and short side respectively..

But, 53% of NSE 500 stocks are still below this average, suggesting that while those run up too quickly, there is no evidence that this could lead to a broad based correction lower...

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