Your Guide To FII Positions For Oct 24 Trade

Overview of FII Activity

On October 23, 2024, foreign institutional investors (FIIs) sold index options worth Rs 932 crore. In contrast, they made substantial purchases in other segments, acquiring stock futures worth Rs 6,524 crore, index futures worth Rs 117 crore, and stock options valued at Rs 307 crore.

FIIs showcased a mixed approach during the trading session, being net buyers in segments such as index futures, cash markets, and stock options and futures. However, they took a selling stance on index options.

FIIs In Cash Market

In the cash market, overseas investors continued to sell Indian equities for the 18th consecutive session on Wednesday. Meanwhile, domestic institutional investors (DIIs) remained net buyers for the 22nd consecutive session, indicating a divergence in market participation.

The provisional data from the National Stock Exchange showed that FIIs offloaded stocks totaling Rs 5,685.7 crore, while DIIs purchased shares worth Rs 6,039.9 crore. Over the last five sessions alone, FIIs divested equities amounting to Rs 24,832.2 crore, compared to DIIs, who acquired shares worth Rs 25,329.5 crore.

FIIs In Futures And Options

As we approach the expiry date on October 31, the outstanding positions, or open interest, for FIIs in Nifty Futures have increased. Specifically, foreign investors expanded their long positions by 3,394 contracts at the end of October expiry. Conversely, their short positions in Nifty 50 Futures rose by 2,513 contracts, maintaining a long-to-short ratio of 33% to 67%.

F&O Cues

The Nifty October futures experienced a slight decline of 0.21%, settling at 24,487 with a premium of 52 points. Open interest also saw a drop of 1.7%. Similarly, Nifty Bank October futures witnessed a decrease of 0.14%, standing at 51,352 with a premium of 113 points and a significant 6.5% reduction in open interest.

The analysis of open interest for the Nifty 50 October 24 expiry illustrated active trading at the 25,000 call strikes, with the highest open interest situated at 24,000 put strikes. For the Bank Nifty options expiry on October 30, the maximum call open interest was recorded at 62,000 and the maximum put open interest at 51,000.

FII Contract Value

As of the end of October expiry, the total open interest value for Nifty 50 Futures in the market declined by Rs 534 crore, dropping from Rs 32,188 crore the previous day to Rs 31,564 crore. Additionally, the overall open interest value for Nifty Bank Futures also decreased by Rs 890 crore, from Rs 13,345 crore to Rs 12,455 crore.

Long-Short Ratio

Notably, the total long-short ratio for foreign investors has increased from 1.17 to 1.24 compared to the previous session, indicating a shift in their trading strategy.

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