Your Guide To FII Positions For Dec. 5 Trade

Foreign institutional investors (FIIs) have had an active presence in the Indian stock market, particularly on December 5, 2024. They have shown a distinct pattern with their trading activities.

Overview of FII Trading

On this day, FIIs purchased index futures valued at Rs 1,099 crore and index options worth a substantial Rs 4,734 crore. In contrast, they took on a selling position in stock options and stock futures, offloading Rs 1,428 crore and Rs 4,318 crore, respectively. This demonstrates a clear preference for trading in index derivatives over individual stock futures and options.

FIIs In Cash Market

In the cash market, foreign institutional investors continued their buying trend for the second consecutive session. They aggregated purchases of Indian equities amounting to Rs 1,797.6 crore. In comparison, domestic institutional investors (DIIs) were net sellers, shedding shares worth Rs 900.62 crore during the same period. This shift marks an interesting contrast given that in November, FIIs had sold equities worth Rs 45,974.1 crore while DIIs had bought stocks worth Rs 44,483.9 crore. Earlier in October, FIIs had their largest sell-off totaling Rs 1.14 lakh crore, while DIIs made acquisitions of about Rs 1.07 lakh crore.

In 2024, foreign institutions have faced challenges, showing a net sale of Rs 2,918 crore in Indian equities as per the latest data from the National Securities Depository Ltd.

FIIs In Futures And Options

As the December expiry approaches, the open interest for FIIs in Nifty futures has diminished. The long-to-short ratio for these index futures indicates a bearish sentiment with a current ratio recorded at 38% long to 62% short.

Thus far, FIIs have continued to invest significantly in index derivatives, amassing a total of Rs 1,099 crore in index futures and Rs 4,734 crore in index options, while continuing their selling trend in both stock options and stock futures.

F&;O Cues

For the Nifty November futures, there has been a slight increase of 0.07%, resulting in a value of 24,563, which is a premium of 96 points. The open interest for this segment also saw a minor increase of 0.01%. The open interest analysis for the Nifty 50 series set to expire on December 5 indicates that most trading volume occurred at the 25,000 call strike, while the maximum open interest was found at the 23,500 put strikes.

FII Contract Value

The total open interest for Nifty 50 futures in the market decreased by Rs 190 crore at the end of the November expiry, down from Rs 28,561 crore to Rs 28,371 crore.

Long-Short Ratio

Finally, the overall long-short ratio for foreign investors has fallen to 1.42, a decline from the previous day's ratio of 1.45. This trend reflects a cautious approach among foreign investors as they navigate the current market circumstances.

FII, Trading, Market