Your Guide To FII Positions For Dec. 24 Trade

As we approach the trading session on December 24, understanding the positioning of Foreign Institutional Investors (FIIs) is essential for market participants.

Foreign Institutional Investors' Activity

On December 23, 2024, FIIs sold index futures worth Rs 644 crore and index options worth Rs 28,448 crore. However, they were net buyers in stock futures, acquiring stocks valued at Rs 6,546 crore, and also bought stock options worth Rs 4,314 crore.

FIIs have maintained their selling trend in the cash market, marking their sixth consecutive day of net selling. They offloaded stocks worth approximately Rs 168.7 crore on Monday, contributing to total sales of Rs 15,996.8 crore over the last six sessions. In contrast, domestic institutional investors (DIIs) continued their buying spree, purchasing stocks worth Rs 2,227.7 crore on the same day.

Market Overview

In December so far, FIIs have sold a total of Rs 4,289.9 crore in stocks, while DIIs have been active buyers, with net purchases amounting to Rs 18,774.1 crore. A comparison with previous months shows a continued trend where FIIs sold shares of Rs 45,974.1 crore in November and Rs 1.14 lakh crore in October 2024.

Despite recent selling, foreign institutions have been net buyers of Rs 4,896 crore worth of Indian equities in 2024, displaying a mixed sentiment overall.

Futures and Options Segment

In the futures and options segment, ahead of the December 24 expiry, FIIs have seen an increase in open interest in Nifty futures. The long-to-short ratio stands at 30% longs to 70% shorts, indicating a cautious sentiment among foreign investors.

The total Nifty 50 futures open interest value saw a decrease of Rs 2,894 crore during the December expiry, dropping from Rs 24,804 crore the day before to Rs 21,910 crore.

Open Interest and Premiums

As of December 23, the Nifty December futures traded down by 0.6%, valued at 23,768, with a premium of 15 points. The open interest decreased by 12.2%, reflecting reduced market activity.

The distribution of open interest for the Nifty 50 December 26 expiry series suggests that most traders have concentrated their positions at the 25,000 call strike while the 23,500 put strike is witnessing maximum open interest.

Long-Short Ratio Insights

The total long-short ratio for FIIs has shown a slight uptick, moving to 1.02 from 1.04 in the previous session. This figure indicates the balance of trading positions among foreign investors and may hint at market sentiment shifting slightly.

These insights provide an overview of FII positions and market dynamics as traders position themselves ahead of the upcoming expiry and potential market movements.

FII, Trading, Market