Your Guide To FII Positions For Nov 1 Trade

This article provides insights into the positioning of Foreign Institutional Investors (FIIs) as of November 1. Understanding these positions can give traders valuable information for their investment strategies.

Overview of FII Transactions

On November 1, 2024, FIIs engaged in various transactions in the derivatives and cash markets. They notably purchased index options worth Rs 69,838 crore and stock futures worth Rs 355 crore. However, they sold index futures, valued at Rs 1,989 crore, and stock options worth Rs 5,278 crore. This indicates a mixed approach, favoring index options and stock futures while offloading index futures and stock options.

FII Participation in Cash Market

FIIs were net sellers in the cash market for the 24th straight day, contributing to a cumulative value of Rs 1.25 lakh crore in stock sell-offs during this span. In contrast, Domestic Institutional Investors (DIIs) were active purchasers, continuing their buying streak for 28 consecutive sessions. In the most recent session, FIIs sold equities worth approximately Rs 5,813.3 crore, while DIIs bought stocks amounting to Rs 3,514.6 crore.

FII Moves in Futures and Options

As the expiry approached on October 31, there was a notable decrease in open interest for FIIs in Nifty Futures. Their long-to-short ratio in index futures stood at 22% long versus 78% short, revealing a bearish sentiment in that segment. The FII activity in futures and options indicated a clear strategy focused more on buying than selling, showcasing a preference for index options and stock futures despite the net selling in other areas.

Futures and Options Overview

The Nifty November futures experienced a decline of 0.41%, settling at 24,405 with a premium of 200 points, and open interest rose by 35.16%. Conversely, the Nifty Bank November futures were down by 0.43% to 51,954, while open interest increased by 15.3%. The distribution for open interest for the Nifty 50 approaching the November 7 expiry highlighted the most activity at 27,000 call strikes, and the maximum put open interest appeared at 22,450 strikes. For the Bank Nifty options expiring on November 6, the highest call open interest was at 60,500 and the largest put open interest was at 47,500.

FII Contract Values

As of the end of October, total open interest for Nifty 50 Futures increased considerably by Rs 9,060 crore, rising from Rs 16,708 crore the day before to Rs 25,768 crore. Additionally, total open interest for Nifty Bank Futures grew by Rs 1,740 crore, from Rs 11,871 crore to Rs 13,611 crore.

Long-Short Ratio Insights

FIIs recorded an increase in the total long-short ratio, which rose to 1.44 from 1.29 in the previous session. This uptick could indicate a growing confidence among FIIs regarding specific market segments despite their recent selling in cash equities.

FII, Market, Trading