Your Guide To FII Positions For Oct 24 Trade

On October 23, 2024, foreign institutional investors (FIIs) showed varied trading activities in the Indian markets. They sold index options worth Rs 932 crore while actively engaging in purchasing stock futures, index futures, and stock options amounting to Rs 6,524 crore, Rs 117 crore, and Rs 307 crore, respectively.

FII Transactions Summary

During the trading session, foreign institutional investors were primarily net buyers in index futures, cash market, stock futures, and stock options, although they opted to sell index options. This marked a shift in investment patterns as domestic institutional investors (DIIs) continued their buying spree.

FIIs In Cash Market

FIIs have been net sellers in Indian equities for an extended period, marking the 18th consecutive session of selling by overseas investors. On the contrary, domestic institutional players remained net buyers for the 22nd consecutive session. According to the National Stock Exchange's provisional data, the FIIs sold stocks valuing Rs 5,685.7 crore, while DIIs bought shares worth Rs 6,039.9 crore. In the last five trading days, FIIs have offloaded equities worth Rs 24,832.2 crore, contrasted with the DIIs, which have purchased stocks worth Rs 25,329.5 crore.

FIIs In Futures And Options

As the October 31 expiry approaches, open interest in the derivatives segment has seen an uptick for FIIs in Nifty Futures. Foreign investors have increased their long positions in Nifty Futures by 3,394 contracts while also augmenting their Nifty 50 short positions in futures by 2,513 contracts. The long-to-short ratio for FIIs in index futures holds steady at 33% long versus 67% short. Notably, FIIs sold index options totaling Rs 932 crore but were buyers of stock futures and options.

F&O Insights

In terms of specific futures, Nifty October futures slipped by 0.21% to 24,487, with a premium of 52 points and a decrease in open interest of 1.7%. Correspondingly, Nifty Bank October futures dropped by 0.14% to 51,352 at a premium of 113 points and a decline in open interest of 6.5%. Analysis of the open interest distribution for the Nifty 50 options ahead of the October 24 expiry series showed that most activities centered around the 25,000 call strikes, with the maximum open interest located at the 24,000 put strikes.

FII Contract Value

The overall value of Nifty 50 Futures open interest fell by Rs 534 crore, dropping from Rs 32,188 crore to Rs 31,564 crore by the end of October expiry. Furthermore, the total value of Nifty Bank Futures open interest decreased by Rs 890 crore, down from Rs 13,345 crore to Rs 12,455 crore.

Long-Short Ratio Overview

The overall long-short ratio for foreign investors nudged upward to 1.24 from the previous session's 1.17. This increment reflects heightened bullish positions amid the existing market dynamics, indicating a notable shift in the trading strategies of FIIs.

FII, Trading, Market