Expiry could unwind positions, leading to a potential reversal: Rohit Srivastava
«We need to watch the net FII futures index positioning also, where they have been holding the highest short position on record and does that really see a significant reduction because then that would signal a change in stance from the institutional player, but so far that is the setup,» says Rohit Srivastava, Founder, Strike Money Analytics & Indiacharts.
This particular series has not been that great for all the bulls out there. We have been testing lower lows for ourselves. But what are the cues for the next expiry and what kind of a rollover data you are reading into?
Rohit Srivastava: Some reduction in the total futures open interest when we actually look at the final data and that would give us a sign that some level of capitulation actually ended up happening because even at the end of last month, there was some reduction, but it did not really take the positioning down to new lows.
In fact, all the position got added back and possibly that is one of the reasons why we still see pressure in this month. So, it will be interesting to watch if that changes.
Also, we need to watch the net FII futures index positioning also, where they have been holding the highest short position on record and does that really see a significant reduction because then that would signal a change in stance from the institutional player, but so far that is the setup.
It is going to be very interesting to watch how these changes happen because net-net over the month that we made a low of around 22,786 in January and we are barely
