InvestorQ : Is it true that there was basket selling in the markets on Wednesday 09 June? Do you see more selling on 10 June also?
Dhwani Mehta made post

Is it true that there was basket selling in the markets on Wednesday 09 June? Do you see more selling on 10 June also?

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diksha shah answered.
1 week ago
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You are right, there was evidence of basket selling on Wednesday, although you can never confirm such things. What I do understand is that the basket selling came from some traders who were long on Nifty and short on dollar. They unwound that trade and the pressure came more from the F&O side on the market.

If you look at the market overall, the pressure was only visible in a span of around half an hour in between the day. Normally, baskets don’t repeat because the whole idea of a basket is to have surprise value. Normally, traders never do baskets when it is being anticipated by the market players. So, another basket selling on Thursday does look unlikely.

Let me now turn to the institutional action on stocks. FPIs net sold Rs.846 crore even as domestic institutions also sold equities worth Rs.272 crore. A good deal of FPI position unwinding apparently got executed through the F&O route, so the impact on cash was rather limited. FPIs continued to remain net buyers in the month of June.

Wednesday was a day of mixed markets. Dow Jones Index was sharply down but NASDAQ was flat at close. European markets were rather mixed with the gains and losses swinging both ways. SGX Nifty was trading positive in early trades on Thursday, but it does look like a lot would depend on trader action.

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