From data on the NSE, the last month or so has seen continuous selling in the cash market by Dmestic Istitutional Inestors (DIIs) and continuous buying by the Foreign Institutional Investors (FIIs).
This hardly says anything bad – the last time the DIIs were continuous net sellers was Sep-Oct 2007 when the index moved 20%.
Of course it went on to go up another 15% before it collapsed.
In a way it’s a sign – if the indices drop a lot suddenly, there’s someone with cash sitting to provide a floor. But that could be very temporary – if there’s a crisis, there’s not enough to support a steep fall. Even so, it’s a short term bullish indicator.
