Your Guide To FII Positions For Dec. 18 Trade

On December 18, foreign institutional investors (FIIs) showcased notable activity in the Indian markets as they transitioned into selling positions. The recent figures indicated significant selling across various segments.

FIIs Selling Overview

On this date, FIIs unloaded index futures valued at Rs 1,224 crore, index options at Rs 29,637 crore, stock futures at Rs 6,360 crore, and stock options at Rs 4,013 crore. This marks the second consecutive day where they have acted as net sellers not only in cash markets but also in both index options and futures.

FIIs Performance in Cash Market

In the cash market, overseas investors continued their trend of selling Indian equities. On Tuesday, they offloaded stocks worth Rs 6,409.9 crore. In contrast, domestic institutional investors stepped in as net buyers with stocks worth Rs 2,706.5 crore, according to provisional data from the National Stock Exchange. This trend can also be traced back to previous weeks where FIIs sold equities totaling Rs 226.7 crore, while domestic investors purchased Rs 2,880 crore. For December thus far, FIIs have sold equities worth Rs 5,018.3 crore, while DIIs have acquired stocks worth Rs 7,144.7 crore.

Historical Context

November saw FIIs offload sizeable stocks worth Rs 45,974.1 crore, while DIIs bought Rs 44,483.9 crore. October was particularly challenging for FIIs, who sold equities worth a staggering Rs 1.14 lakh crore, while DIIs acquired approximately Rs 1.07 lakh crore in the same period. Cumulatively in 2024, foreign institutions have been net sellers of Indian equities amounting to Rs 10,872 crore.

FIIs Activity in Futures and Options

In the derivatives segment, prior to the Dec. 24 expiration, the open interest for FIIs in Nifty futures has seen a reduction. The long-to-short ratio among the FIIs in index futures currently stands at 36%:64%. Additionally, the value of Nifty 50 futures open interest increased by Rs 111 crore, rising from Rs 26,908 crore to Rs 27,019 crore.

F&O Cues

The performance of Nifty December futures declined by 1.36%, flowing to 24,401 at a premium of 65 points, with open interest up by 1.73%. The distribution of open interest for the Nifty 50 due on Dec. 19 indicates significant activity at the 25,000 call strikes while max open interest appears at the 23,900 put strikes.

Long-Short Ratio Insights

The long-short ratio among foreign investors fell to 1.10 from the previous session's 1.23. This shift indicates a more cautious sentiment in the market as FIIs adjust their positions in response to wider market trends.

FII, markets, selling