Nifty clocks best gains in 34 months in December F&O series. Can it beat this show in January?

economictimes.indiatimes.com:

Benchmark Nifty 50 rallied over 8% in the December derivative series, clocking its best gains in a series since February 2021. This was also the highest series gain by the index in 2023.

Further, foreign institutional investors significantly increased their net long positions, taking the long-short ratio sharply higher to 2.28 at the beginning of the January series from 0.56.

Open interest in Nifty January futures at over Rs 301 billion or 13.9 million shares, is the highest seen since the April derivative series, pointed out analysts.

The base with which the new year and the January series begin shows the ultra-bullish sentiment prevailing in the market.

However, most analysts have sent out a word of caution and believe that a trend reversal is quite possible in the current series.

“It’s quite evident that FIIs, previously leaning towards a short bias, have now pivoted strongly towards a long bias and their current index future long positions make up nearly 70% of the total open interest.