Your Guide To FII Positions For Jan. 2 Trade

The landscape of foreign investments in Indian markets continues to evolve as we kick off the new year. On January 2, 2025, foreign institutional investors (FIIs) exhibited a mixed trading pattern. They sold index futures valued at Rs 767 crore and stock futures worth Rs 758.9 crore. Conversely, they made significant purchases in index options amounting to Rs 12,311 crore and stock options totaling Rs 22.38 crore.

FIIs in Cash Market

For the twelfth consecutive session, foreign portfolio investors have been net sellers in the cash market. Data from the National Stock Exchange shows that FIIs offloaded stocks worth Rs 1,782.7 crore, while domestic institutional investors (DIIs) stepped in to buy stocks worth approximately Rs 1,690.4 crore. Overall, in 2024, overseas investors were net sellers, offloading a total of Rs 7,292.3 crore. In contrast, DIIs have remained active buyers, acquiring stocks worth around Rs 5.32 lakh crore.

Interestingly, data updated from the National Securities Depository Ltd. reveals that foreign institutions were net buyers of Rs 427 crore in Indian equities throughout the current year.

FIIs in Futures and Options

With the Jan. 25 expiry approaching, FIIs have increased their outstanding positions in the derivatives segment, particularly in Nifty futures. As of January 2, their long-to-short ratio in index futures stands at 14%:86%. This indicates a clear tendency to sell rather than buy in this sector.

Overall, FIIs sold index futures worth Rs 767 crore and stock futures worth Rs 758.9 crore. Meanwhile, their investments in index options and stock options highlight a contrasting strategy, with purchases of Rs 12,311 crore and Rs 22.4 crore, respectively.

FII Contract Value

The total open interest of Nifty 50 futures market registered a marginal increase, up by Rs 73 crore, reaching Rs 31,713 crore by the end of the trading day. This reflects ongoing interest in the derivatives market, despite the selling in the cash segment.

F&O Cues

The Nifty January futures traded higher, gaining 0.42% to reach 23,907, with a premium of 165 points. The open interest saw a slight decline of 0.16%. Analysis of the open interest distribution for Nifty 50's January 2 expiry indicates that the most activity remains concentrated at the 24,500 call strikes, while the 23,000 put strikes hold the maximum open interest.

Long-Short Ratio

The overall long-short ratio for foreign investors dropped slightly to 1.45 from 1.47 in the previous session. Such trends in the FII positions provide valuable insight into market sentiment as investors navigate the evolving landscape of foreign investments in Indian markets.

FII, Trade, Market