FII index futures shorts are at their highest-ever level, adjusted for lot sizes. Sentiment is stretched, while Nifty’s RSI is oversold and showing positive divergence.
There is no magic number of shorts that guarantees a reversal. An oversold market can remain oversold. Short covering needs a trigger.
With the US 10-year yield at 5.2%, could a positive development in the US–Iran conflict provide that trigger?
Can Trump TRUMP the shorts?
Chart source: Strike.Money.
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