Your Guide To FII Positions For Dec. 18 Trade

On December 17, 2024, the markets saw significant movement as foreign institutional investors (FIIs) sold off various financial instruments. Notably, they sold index futures worth Rs 1,224 crore, index options totaling Rs 29,637 crore, stock futures amounting to Rs 6,360 crore, and stock options of Rs 4,013 crore.

FIIs in Cash Market

On this day, overseas investors were net sellers in Indian equities for the second consecutive day, while domestic investors found themselves in a buying position. Foreign portfolio investors (FPIs) sold stocks worth Rs 6,409.9 crore, contrasting with domestic institutional investors (DIIs) who purchased stocks amounting to Rs 2,706.5 crore. Preliminary data from the National Stock Exchange indicates that FPIs had offloaded equities worth Rs 226.7 crore last week, while DIIs invested Rs 2,880 crore.

Overall, in December up to this point, FPIs have acquired equities worth Rs 5,018.3 crore, while DIIs have bought stocks worth Rs 7,144.7 crore. Looking back at previous months, in November, FPIs sold equities worth Rs 45,974.1 crore, and DIIs bought Rs 44,483.9 crore. In October, FPIs had a much larger sell-off at Rs 1.14 lakh crore, compared to DIIs’ purchases of Rs 1.07 lakh crore.

In 2024 year-to-date, foreign institutional players have been net sellers of Rs 10,872 crore in Indian equities according to updated data from the National Securities Depository Ltd.

FIIs in Futures and Options

As the December 24 expiry approaches, FIIs have seen a decrease in outstanding positions, known as open interest, particularly in Nifty futures. The long-to-short ratio for FIIs in index futures remains at 36% long to 64% short, indicating a bearish sentiment.

FII Contract Value

At the end of the December expiry period, the total value of Nifty 50 futures open interest rose slightly by Rs 111 crore, moving from Rs 26,908 crore to Rs 27,019 crore as market data showed.

F&O Cues

Latest figures show that Nifty December futures declined by 1.36%, pricing at 24,401 with a premium of 65 points. The open interest increased by 1.73%. Furthermore, for the Nifty 50 December 19 expiry series, the distribution of open interest indicates the majority of activity is clustered around the 25,000 call strikes, whereas the 23,900 put strikes hold the maximum open interest.

Long-Short Ratio

The total long-short ratio for foreign investors dropped to 1.10 from the previous session's 1.23, signaling a shift in market sentiment. Understanding these dynamics will be crucial for investors looking to navigate the upcoming trading days.

FII, Market, Trading