Nifty futures on the NSE International Exchange traded 13 points, or 0.06 per cent, lower at 21,861, hinting at a flattish start for the domestic market on Tuesday.
FPIs covered their short positions in Index futures on the last day of the December series and that suggests that the ongoing strong bullish momentum is likely to continue as we head to the January series.
A look at the futures Open Interest (OI) data indicates a build-up of long positions in Nifty futures, with India VIX falling by 4.79% to 13.75, said Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities emphasising that this gives major comfort to the bulls. Despite a 1.41% fall in Nifty in December, the long-short ratio jumped to 65.22% from 62.31% on December 19, as the Foreign Portfolio Investors (FPIs) increased their long exposure in Index futures, Ramani said.