Your Guide To FII Positions For Jan. 10 Trade

The recent market dynamics indicate that Foreign Institutional Investors (FIIs) have continued a trend of selling. On January 9, 2025, FIIs sold index options totaling Rs 22,612.25 crore and index futures worth Rs 2,186.85 crore.

FIIs in Cash Market

Continuing their selling streak, FIIs were net sellers for the fifth consecutive session on January 9, unloading stocks valued at Rs 7,170.9 crore, according to provisional data from the National Stock Exchange. Meanwhile, Domestic Institutional Investors (DIIs) have been consistent buyers, purchasing stocks worth Rs 7,639.6 crore for the 17th straight session.

The pattern of foreign investors offloading stocks has persisted, with a total of Rs 3,362.2 crore in sales reported on January 8. For the month of January 2025, FIIs have divested stakes worth Rs 15,164 crore based on data from the National Securities Depository Ltd.

Throughout 2024, overseas investors were net sellers, with a cumulative sell-off amounting to Rs 7,292.3 crore. Conversely, DIIs maintained a positive outlook, acquiring stocks worth Rs 8,282.8 crore during the same period. However, data updated till the previous trading day reveals that foreign institutions have made net purchases amounting to Rs 3,736.95 crore in Indian equities so far in 2024.

FIIs in Futures and Options

As the expiry date approaches on January 25, the outstanding positions, also known as open interest in the derivatives segment, have risen for FIIs in Nifty futures. The long-to-short ratio for FIIs in index futures stands at 16% long versus 84% short.

In terms of derivatives activity, FIIs have sold index options worth Rs 22,612.25 crore, index futures for Rs 2,186.85 crore, stock futures valued at Rs 3,452.89 crore, and stock options for Rs 5,086.76 crore. The total open interest in Nifty 50 futures has seen an increase of Rs 1,515.3 crore, rising from Rs 30,743.5 crore to Rs 32,258.8 crore.

Market Setup for January 10

The Nifty January futures recorded a decline of 0.46%, settling at 23,671.10, with a premium of 110.25 points. The open interest in this segment is up by 5.52%. Moreover, ahead of the January 16 expiry, the open interest distribution indicates highest activity at the 26,500 call strike, while the 22,500 put strike holds the maximum open interest.

Long-Short Ratio Analysis

Additionally, the overall long-short ratio for foreign investors has slightly dropped to 1.20 from 1.21 in the preceding session. Investors are advised to consider these indicators when strategizing their next moves in the market.

FII, Market, Trading