Why are FIIs Selling? Is the Correction in the Nifty Over?
WHY ARE FIIs SELLING? WHEN WILL THE SELLING STOP? | PART 3 – IS THE CORRECTION OVER?
The NIFTY hit a new all-time-high on 26-Sept-24, but has seen a dramatic reversal in fortunes ever since then. So far, the NIFTY has corrected by almost 11% from it most recent all-time-high. In Part 1 and 2 of this series, I tried to explore the key factor/s that are driving the current bout of volatility in the NIFTY. We saw in In Part 1 and 2 how the NIFTY and the MOVE Index (which tracks volatility of the US government bond market) have historically moved in tandem with each other, but in opposite directions, and how the NIFTY correction we have witnessed since 26-Sept-24 can be explained almost entirely as an outcome of the spike we have seen in the MOVE Index during this time. And that’s why I have been reiterating that before the NIFTY can make a bottom and start to rebound again, it is imperative that the MOVE Index comes down first. Incidentally, that’s exactly what seems to have happened over the last one week or so… the MOVE Index has dropped from a high of 136 to under 100, and the NIFTY has rebounded by almost 1,000 points, in the process recovering about a third of the cumulative correction (of 3,000 points) that it has suffered since 26-Sept-24.
So what does all this mean? Does this mean that the correction in the NIFTY is over and that the NIFTY is now on course to make a new all-time high? In this episode, I address this very question.
So Do watch the full video on ”Why are FIIs Selling? When will the Selling Stop? | Part 3 – Is the Correction Over? NIFTY-50 Crash”
