Nifty F&O: FII Longs Hit 3-Month Low, What's Next for Indian Equities?

• Indian equities experienced their worst week in nearly three months, with a ₹15 lakh crore sell-off.
• Nifty 50 closed below its 20-day and 50-day Moving Averages, breaking a 500-600-point range.
• Foreign Institutional Investors (FIIs) aggressively sold index futures, increasing short exposure.
• FII long exposure in index futures is at 7.5%, the lowest since October 14, 2025, with 1.86 lakh net short contracts.
• Historically, similar low FII long positions in October led to a significant Nifty bounce of nearly 900 points.

Why It Matters: FIIs' lowest long exposure in three months signals potential volatility, but past trends suggest a Nifty bounce.