FIIs Changing Mood

After a long haul you may say that this is a change of heart. FIIs at the end of yesterday hold a 70,000 contracts long position in index futures. This is not the largest but this is the highest in over a year since PM Modi was reelected. FIIs reduced their long positions ahead of the election and ever since have not held a position of more than 50k contracts. At that level markets mostly topped out. This breakout then is a change in trend and mood especially on the first day of the new series where people are fearing the impact of the new margin system. The last peak in positions was at 123972 contracts in April 2019. Before that we have only seen major tops in positions over 200k contracts. We will continue to watch how far this change in mood takes us. After all in March FIIs had the highest short position on record in the data since 2012. So that was the most pessimistic reading ever. Now we are going the other way.