Strong build-up of short positions in the market

  • IANS
  • Stock Market News
Strong build-up of short positions in the market
Credit: © Reuters.

New Delhi, Jan 9 (IANS) The 197 points decline in Nifty on January 8 despite marginal buying by both FIIs and DIIs indicates strong build up of short positions in the market, said V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services.Long positions are steadily declining and short positions are building up. This short build up is on bearish expectations that the present high valuations are difficult to sustain and some triggers may lead to sharp corrections, he said.

This expectation need not be realised since global cues have again turned positive on a rally in the US market. Domestic cues are looking good. Buy on dips strategy may work again leading to some short covering, he said.

Strong JLR numbers from Tata Motors (NS: TAMO ) and the attractive buy back offer from Bajaj Auto (NS: BAJA ) will give support to the Nifty Auto Index. The real estate segment is doing well and the margin expansion happening in the industry bodes well for the sector. But the good news is in the price, he said.

BSE Sensex is up 548 points at 71,903 points on Tuesday led by IT stocks. Tata Motors is up 2 per cent. HCL Tech (NS: HCLT ) is up 1.5 per cent.

--IANS

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  • yash pal @yash pal
    aaj market ktna kyu giri, mera sara account wash ho gya
    Like 0
  • Prashant yadubanshi @Prashant yadubanshi
    waoo
    Like 0
  • Rajat Dhar @Rajat Dhar
    In Coherent and bad quality analysis. Of the market.. here. The writer has taken a middle path.. In either case, based on everyday highs and lows, you cannot decide on their buying and selling. Trends. Unless and until certain developments either macroeconomically. Politically or otherwise develop.
    Like 4
  • Raj Babaria @Raj Babaria
    What nonsense, buy b bol raha hai correction b bol raha hai bevkuf bana rahe hai
    Like 2
  • Harsh Mehta @Harsh Mehta
    SHORT SQUEEZE POSSIBLE. LOL
    Like 0

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