Your Guide To FII Positions For March 7 Trade

Foreign Institutional Investors (FIIs) have been active in the Indian stock market, and their recent activities have shown a continued trend of selling. On March 6, 2025, FIIs offloaded stocks valued at approximately Rs 2,377.32 crore, marking their 11th consecutive day of selling in Indian equities.

While FIIs have been net sellers, they have simultaneously engaged in buying activities in index and stock futures. Notably, they were found to be sellers in stock options as well as index options, indicating a mixed strategy in their trading approach.

Cash Market Overview

On the cash market front, the trend seems consistent. FIIs remained net sellers, having disposed of equities valued at Rs 2,371.47 crore the previous trading day. In contrast, domestic institutional investors (DIIs) were net buyers for the 21st consecutive session, acquiring shares worth Rs 1,617.80 crore, according to preliminary data from the National Stock Exchange.

This ongoing conflict between FIIs and DIIs highlights varying sentiments in the market, where foreign investors seem to be pulling back while domestic investors continue to bolster their positions.

Futures And Options Analysis

As the market moves toward the March 27 expiry date, the value of outstanding positions, also known as open interest, has seen an uptick among FIIs in Nifty futures. Currently, the long-to-short ratio reported stands at 18:82, indicating that while there are some long positions, they are heavily outweighed by short positions.

FIIs purchased Nifty futures worth Rs 1,743.85 crore and stock futures worth Rs 1,676.5 crore but notably sold index options valued at Rs 18,394.5 crore and stock options worth Rs 315.47 crore, a significant contribution to their overall strategy of hedging against current market fluctuations.

FII Contract Value and Market Reaction

The overall open interest in Nifty 50 futures saw a decrease of Rs 951.01 crore, shifting from Rs 40,007.1 crore to Rs 40,958.11 crore at the end of March expiry. This decrease may suggest a reduction in speculative bets leading up to the expiry.

Market Cues from F&O

In terms of futures and options, the Nifty March futures climbed by 0.80%, reaching 22,620.95 at a premium of 76.25 points with open interest increasing by 1.56%. This suggests that there is still bullish momentum despite the sell-off by FIIs.

Additionally, market activity has shown that call options at the 23,000 strike saw the most engagement, while the 21,000 put strike recorded maximum open interest, indicating investor sentiment providing insight into potential support and resistance levels.

Long-Short Ratio Insights

The long-short ratio for foreign investors has increased slightly to 1.46 from the previous 1.41, indicating a small shift towards more bullish positioning. As traders prepare for the trading day on March 7, immediate support for the Nifty index is forecasted to be around 22,240.

FII, Equities, Markets