After raising their index future long positions to the highest level since May 2025, the buying appears to have stalled, especially soon after the monthly expiry as well as the Fed rate decision. Friday ended with index future short positions rising 5.6%, while longs were cut 1.6%, adding to the overall negative close for the week.

Consequently, longs constitute only 16% of the FII index future portfolio, a sharp decline from 25 levels early in the week. However, it is instructive to note that the 48% reduction in longs on Tuesday from 56,880 contracts could be seen as an expiry event and too large a decline to be attributed to a potential reversal in trend. This encourages us to believe that FIIs might return as buyers soon in the coming week, though the mid-week trading holiday might

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