Your Guide To FII Positions For Dec. 5 Trade

Foreign Institutional Investors (FIIs) have shown significant activity in the Indian stock market ahead of the trading session on December 5. On December 4, they reported net purchases of both index options and index futures, while continuing to sell stock options and stock futures.

FII Activity Overview

In the latest trading session, FIIs acquired index futures worth Rs 1,099 crore and index options totaling Rs 4,734 crore. Conversely, they sold stock options valued at Rs 1,428 crore and stock futures worth Rs 4,318 crore. These movements reflect a cautious yet strategic approach ahead of the upcoming expiry in the derivatives segment on December 24.

Cash Market Engagement

FIIs remained net buyers of Indian equities for the second consecutive day, with purchases reaching Rs 1,797.6 crore. On the other hand, Domestic Institutional Investors (DIIs) sold shares worth Rs 900.62 crore during the same period. This trend illustrates a contrasting sentiment between foreign and domestic investors.

Recent Trends and Historical Data

November was a challenging month for FIIs, where they sold stocks amounting to Rs 45,974.1 crore. In comparison, DIIs purchased Rs 44,483.9 crore during the same timeframe. Earlier, in October, FIIs had offloaded equities worth Rs 1.14 lakh crore, while DIIs invested around Rs 1.07 lakh crore.

For the year 2024, the net selling by foreign investors has reached Rs 2,918 crore in Indian equities as per the latest records from the National Securities Depository Ltd.

Understanding Futures and Options Context

As the expiry date approaches, FIIs have reduced their open interest in Nifty futures. The current long-to-short ratio for FIIs in index futures stands at 38% to 62%, indicating a predominant selling strategy in this segment.

Market Open Interest Insights

The open interest for Nifty November futures increased slightly, up by 0.01%, while the index’s price moved up by 0.07% to a level of 24,563, indicating a premium of 96 points. This data suggests a responsive market amid ongoing trading dynamics, with activity at key strike prices.

Analysis of Open Interest Value

As for the total open interest in Nifty 50 futures, it decreased by Rs 190 crore, settling at Rs 28,371 crore at the end of November. This reduction showcases a potential shift in trader sentiment and risk appetite.

Long-Short Ratio Assessment

The long-short ratio for foreign investors has seen a decline to 1.42 from the prior ratio of 1.45, further highlighting a cautious stance taken by FIIs in the current market environment.

FII, Stocks, Market