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Nifty Short Squeeze: How Retail Took FIIs’ Money in November
Sahi 15 hrs ago·7 Nov 2026, 8:30 pm
In early November, Nifty saw a sharp rally after a wave of buying by retail investors that forced a short squeeze. Many foreign institutional investors (FIIs) had sizable short positions; as retail demand pushed the index higher, those shorts had to be covered, amplifying the move.
The squeeze matters because it shows how coordinated retail activity can quickly reverse market sentiment and create volatility, especially when large foreign players are on the opposite side. Investors should keep an eye on FII net positions, retail flow data, and any policy cues that could affect sentiment, as a reversal could bring the index back down.
Excerpt from Sahi
Nifty is up around 2,500 points, or 11%, in ten trading sessions – from 22,400 on Oct 23 to 25,030 on Nov 6 – and almost none of it was bought. It was covered. Going into the November series, the participant-wise index futures data showed the most lopsided positioning of the year. FIIs sat on roughly 2.8 lakh…Read the original at Sahi
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