Just a small observation from the last few sessions.
Whenever the market starts falling close to 2% intraday, buying suddenly appears and the index stabilizes. It almost feels like someone is absorbing the fall and keeping the market range-bound.
Looking at the last 5 sessions, the data is interesting:
• FII outflows: ₹28,000 Cr
• DII inflows: ₹41,000 Cr
So effectively, domestic institutions have been absorbing most of the selling pressure.
One way to interpret this is that DIIs are acting as a counterbalance, preventing sharper declines even while foreign money exits.
But it raises an important question.
If global tensions escalate further and risk sentiment deteriorates, can DIIs continue to absorb the supply? Or are they simply smoothing volatility for now while the market is already 10% off its highs?
Markets rarely stay compressed forever. Either FII selling slows, or institutional buying capacity eventually gets tested.
Curious to hear how others are interpreting this dynamic between FII selling and DII support in the current environment.
But how long this can continue like this, that is the thing worrying me only. Global situation is not settling and if it is getting worse then even DII support will not be enough, better to keep positions small and we will wait for clarity first