Your Guide To FII Positions For Nov. 7 Trade

Foreign Institutional Investors (FIIs) have continued their trading activity with notable movements observed in their positions ahead of the upcoming trade date of November 7. This guide provides a detailed look at their recent strategies and market contributions.

FII Trading Overview

On November 6, 2024, FIIs exhibited a mix of buying and selling across different market segments. They purchased index options worth Rs 9,337 crore but were net sellers in other segments. Specifically, they sold stock futures valued at Rs 904 crore, index futures totaling Rs 482 crore, and stock options worth Rs 1,296 crore. This shift marks their continuing strategy as they position themselves in a volatile market.

FIIs In Cash Market

In the cash market, FIIs have been net sellers for 28 consecutive days. As per provisional data from the National Stock Exchange, foreign portfolio investors have offloaded stocks worth Rs 4,445.6 crore. In contrast, domestic institutional investors (DIIs) have been active buyers, acquiring stocks worth approximately Rs 4,889.3 crore. Over the past five trading sessions, FPIs have sold equities totaling Rs 17,370 crore while DIIs have purchased shares worth Rs 13,993.6 crore, highlighting the ongoing divergence in investor sentiment.

FIIs In Futures And Options

As of now, the value of outstanding positions or open interest in the derivatives segment has seen an increase for FIIs in Nifty Futures. The long-to-short ratio for FIIs in index futures currently stands at 26% to 74%. This indicates a preference towards a bearish standpoint within this segment.

F&O Market Signals

As the Nifty November futures rose by 1.22% to reach 24,587, they traded at a premium of 103 points with open interest climbing by 0.6%. In the same vein, Nifty Bank November futures observed a 0.55% increase to 52,650 at a premium of 333 points, alongside a 3% rise in open interest. The open interest distribution showcasing the Nifty 50 for the November 7 expiry reveals significant activity around the 27,000 call strikes while the 24,000 put strikes reflected maximum open interest. For the Bank Nifty options expiry, the maximum call open interest was recorded at 52,500 and maximum put open interest at 50,000.

FII Contract Value

The total contract value for Nifty 50 Futures increased by Rs 160 crore, with open interest rising from Rs 27,145 crore to Rs 27,305 crore. Furthermore, the total open interest value for Nifty Bank Futures saw an increase of Rs 972 crore, moving up from Rs 12,930 crore to Rs 13,362 crore. This upward trend in open interest suggests a growing engagement in these futures contracts.

Long-Short Ratio

The total long-short ratio for foreign investors remains fairly stable at 1.44, indicating a balanced approach in their trading strategies.

FII, Market, Trading