Nifty shorts hit six-month high as September F&O series posts worst performance in 25 years

Nifty's September futures and options series delivered its worst performance in 25 years, with the index declining 6.7%. Foreign institutional investors significantly increased bearish positions, pushing index shorts to a six-month high.

While stock futures remained net long, the divergence signals caution among analysts. Nifty is trading near key long-term support levels, and market breadth has weakened, raising concerns about underlying strength.

Market watchers have advised investors to exercise caution given the combination of elevated short positions, declining breadth, and the index's proximity to critical support.