Your Guide To FII Positions For Dec. 5 Trade

Foreign Institutional Investors (FIIs) have made significant moves in the Indian equity market as of December 5, 2024. On this day, they were net buyers of index futures and index options, but net sellers in stock options and stock futures.

FIIs Buying Trend

On this date, FIIs purchased index futures worth Rs 1,099 crore and index options valued at Rs 4,734 crore. However, they sold stock futures amounting to Rs 4,318 crore and stock options totaling Rs 1,428 crore. This trend indicates a strategic preference for index instruments over individual stocks.

Notably, Foreign Portfolio Investors (FPIs) have been active in the cash market, buying equities worth Rs 1,797.6 crore, while Domestic Institutional Investors (DIIs) were net sellers of Rs 900.62 crore on the same day.

Market Overview

In the preceding month, the market witnessed a significant sell-off by foreign investors, with FPIs disposing of stocks worth Rs 45,974.1 crore, contrasted with the buying spree of DIIs, who accumulated stocks worth Rs 44,483.9 crore. This reversal of fortunes has continued into December, with FIIs returning as net buyers for consecutive sessions.

Futures and Options Insights

The derivatives segment displayed a decrease in open interest for FIIs in Nifty futures ahead of the December 24 expiry, with a current long-to-short ratio standing at 38%:62%. This suggests a cautious approach, as FIIs adjust their positions accordingly.

Open Interest Analysis

As of now, the open interest in Nifty November futures showed a marginal increase of 0.01%, maintaining a premium of 96 points at 24,563. The open interest distribution indicates heightened interest at the 25,000 call strike, with the 23,500 put strikes showing the maximum open interest.

Long-Short Ratio Changes

The long-short ratio for FIIs has seen a slight decline, moving from 1.45 to 1.42. This adjustment could suggest a reevaluation of market conditions by foreign investors as they navigate the evolving landscape.

FII, Market, Trading