By VK Sharma

If one recalls, we had said last fortnight that a gentle nudge above the 25,100 mark can be sufficient to induce a change of heart among foreign institutional investors (FIIs). But a close above 25,400 will send even the most battle-hardened FII scurrying for cover.

That is precisely what happened when the Nifty closed above the 25,400 mark. FIIs’ short positions, which were at their highest at 98% earlier last week, were down to 80% by Friday evening. The great short covering has just begun.

Technically speaking, the Nifty is now on a firm wicket. It is cruising comfortably above all its important averages. It is making higher tops and higher bottoms, and oscillators are also well placed.

But the most important development is that the Nifty has pierced the trendline n

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