Your Guide To FII Positions For Nov 6 Trade

This article provides an overview of the Foreign Institutional Investors (FIIs) positions as of November 6, 2024. It highlights the recent trading activities and key market insights for better understanding of market trends.

Recent FII Trading Activities

FIIs have shown robust trading in various segments. They purchased index options totaling Rs 41,965 crore, stock futures worth Rs 2,831 crore, and index futures amounting to Rs 812 crore. However, there was a notable selling of stock options valued at Rs 814 crore.

FIIs' Performance in Cash and Derivatives Market

Over the last session, foreign institutional investors remained net sellers in the cash market for the 27th consecutive day and also sold stock options. Conversely, they have been active buyers in both index futures and stock futures.

According to provisional data from the National Stock Exchange, FIIs sold stocks worth Rs 2,569.4 crore while domestic institutional investors (DIIs) bought stocks amounting to approximately Rs 3,031 crore. Over the past five trading sessions, FIIs offloaded equities worth Rs 17,538.1 crore while DIIs procured shares valued at Rs 13,622.6 crore.

Insights Into Futures and Options

Ahead of the October 31 expiration, the open interest in Nifty Futures for FIIs has declined. The long-to-short ratio among FIIs in index futures currently stands at 26% long to 74% short.

Market Movements

The Nifty November futures were noted to be up by 0.74%, settling at 24,295 with a premium of 82 points and an increase in open interest by 0.21%. Similarly, the Nifty Bank November futures rose by 1.51% to 52,394 with a premium of 187 points, although its open interest saw a decline of 9.27%.

The open interest distribution indicates that for the Nifty 50 November 7 expiry series, most activity is concentrated at the 27,000 call strikes, while maximum open interest is found at the 22,450 put strikes. In the case of Bank Nifty options expiry on November 6, maximum call open interest is recorded at 60,500 and maximum put open interest at 43,000.

Contract Value Trends

The overall value of Nifty 50 Futures open interest saw an increase from Rs 26,886 crore to Rs 27,145 crore, an uplift of Rs 259 crore. On the other hand, the open interest for Nifty Bank Futures decreased by Rs 1,092 crore, dropping from Rs 14,022 crore to Rs 12,930 crore.

Long-Short Ratios and Trading Setup

Recently, the overall long-short ratio for FIIs escalated to 1.44 from 1.38 in the previous session, indicating shifting market sentiments. For traders, it is crucial to keep an eye on the support levels; the Nifty 50 currently needs to hold key support around 24,250-24,200.

FII, Trading, Markets