Your Guide To FII Positions For Oct 24 Trade

This article provides an overview of the foreign institutional investors (FIIs) positions in the Indian stock market leading up to the trades scheduled for October 24, 2024. It examines the buying and selling activities of FIIs in various segments including index options, stock futures, and cash market.

FIIs Selling and Buying Activities

On the trading day prior, FIIs sold index options valued at Rs 932 crore. However, they were active buyers in other segments, purchasing stock futures worth Rs 6,524 crore, index futures for Rs 117 crore, and stock options amounting to Rs 307 crore.

This illustrates a mixed strategy where, despite large sales in one area (index options), FIIs have maintained a strong buying position in stock futures and options.

Activity in the Cash Market

Recent trends show that overseas investors have been net sellers in Indian equities for 18 consecutive sessions. On the other hand, domestic institutional investors (DIIs) have consistently been net buyers for 22 sessions.

According to provisional data from the National Stock Exchange, foreign investors sold shares worth Rs 5,685.7 crore on Wednesday, while domestic players bought stocks totaling Rs 6,039.9 crore. In the last five trading sessions, FIIs have offloaded stocks valued at Rs 24,832.2 crore, contrasted with DIIs acquiring Rs 25,329.5 crore in shares.

Futures and Options Overview

As October 31 approaches, which marks the expiry of the current trading contracts, there has been an increase in open interest for Nifty Futures held by FIIs. They have raised their long positions by 3,394 contracts while simultaneously increasing their short positions in Nifty 50 futures by 2,513 contracts. This results in a current long-to-short ratio for index futures of 33% long to 67% short.

F&O Market Signals

As of the last report, Nifty October futures experienced a decline of 0.21% to 24,487, trading at a premium of 52 points, with open interest also falling by 1.7%. Meanwhile, Bank Nifty October futures slipped by 0.14% to 51,352 at a premium of 113 points, with a more considerable open interest decline of 6.5%.

The upcoming expiry series shows significant activity at 25,000 call strikes for Nifty 50 and maximum open interest at 24,000 put strikes. For Bank Nifty, the maximum call open interest rests at 62,000 and the maximum put open interest at 51,000.

Evaluating Contract Values

The total open interest value in Nifty 50 Futures has decreased by Rs 534 crore to Rs 31,564 crore at the end of the October expiry. Regarding Nifty Bank Futures, the total open interest dropped by Rs 890 crore to Rs 12,455 crore.

Long-Short Ratio Insights

The overall long-short ratio for foreign investors has seen an uptick, moving from 1.17 to 1.24, indicating a slight increase in long positions relative to shorts.

FII, Trading, Options