Your Guide To FII Positions For Jan. 10 Trade

Foreign institutional investors (FIIs) have been net sellers in the stock market, continuing a downward trend that has persisted for five consecutive sessions. On January 9, 2025, they sold stocks worth Rs 7,170.9 crore, as reported by provisional data from the National Stock Exchange.

During this period, domestic institutional investors (DIIs) maintained their buying momentum, purchasing stocks worth Rs 7,639.6 crore over the same timeframe. This consistent pattern of activity highlights a divergence between foreign investors selling off substantial quantities of stocks while domestic investors remain optimistic.

Recent FII Activity

As part of their selling strategy, FIIs offloaded index options valued at Rs 22,612.25 crore and index futures amounting to Rs 2,186.85 crore. They also sold stock futures worth Rs 3,452.89 crore and stock options totaling Rs 5,086.76 crore.

In the context of overall trading activities, the Nifty January futures experienced a decrease of 0.46%, trading at 23,671.10, with a premium of 110.25 points. Furthermore, open interest in Nifty futures climbed by 5.52% ahead of the upcoming expiry on January 25.

Understanding Open Interest

The total open interest for Nifty 50 futures rose significantly by Rs 1,515.3 crore, increasing to Rs 32,258.8 crore, up from Rs 30,743.5 crore the previous day. This indicates a growing interest in Nifty futures within the market, reflecting a level of active participation.

Market Sentiment and Strategies

The long-to-short position ratio in index futures among FIIs stands at 16% long and 84% short. This indicates a bearish sentiment prevailing among foreign investors, suggesting they expect further declines in the market.

As for the overall strategy, the Nifty open interest distribution for the subsequent expiry on January 16 reveals significant trading focus at 26,500 call strikes, while the 22,500 put strikes show the highest level of open interest. This distribution helps traders gauge the potential support and resistance levels for upcoming sessions.

Conclusion and Market Outlook

With FIIs continuing their sell-off strategy while DIIs remain net buyers, market participants should remain vigilant. The total long-short ratio for foreign players has slightly decreased from 1.21 to 1.20, pointing to a cautious approach in market positions. As we move closer to key expiry dates, staying informed about these dynamics will be crucial for making trading decisions.

FII, Stock, Market