Your Guide To FII Positions For Dec. 5 Trade

On December 5, 2024, foreign institutional investors (FIIs) demonstrated active participation in the Indian stock market, particularly in the derivatives segment. They acquired index futures valued at Rs 1,099 crore and index options amounting to Rs 4,734 crore. However, they were net sellers in stock options, worth Rs 1,428 crore, and stock futures, amounting to Rs 4,318 crore.

FIIs In Cash Market

Overseas investors continued to buy Indian equities in the cash market for the second day in a row on December 5. In contrast, domestic institutional investors were net sellers for the second consecutive session. Provisional data from the National Stock Exchange indicated that foreign portfolio investors purchased shares worth Rs 1,797.6 crore, while domestic institutional investors sold shares worth Rs 900.62 crore.

Walking back to previous months, it is noted that in November, foreign portfolio investors sold stocks valued at Rs 45,974.1 crore while domestic investors accumulated stocks worth Rs 44,483.9 crore. A sharper decline occurred in October when FPIs sold shares totaling Rs 1.14 lakh crore, contrasting with DIIs purchasing equities worth Rs 1.07 lakh crore. Overall, as of December 5, foreign institutions have been net sellers of Rs 2,918 crore in Indian equities this year, according to the data provided by the National Securities Depository Ltd.

FIIs In Futures And Options

As the December 24 expiry approaches, data reveals a decrease in the total open interest positions for FIIs in Nifty futures. Presently, FIIs maintain a long-to-short ratio in index futures of 38% to 62%. The overall strategy indicates a continued buy interest in index instruments.

On December 5, FIIs purchased index futures valued at Rs 1,099 crore and index options worth Rs 4,734 crore. They sold stock options for Rs 1,428 crore and stock futures for Rs 4,318 crore, indicating a diverse approach toward different asset classes.

F&O Cues

In the derivatives market, Nifty November futures increased by 0.07%, closing at 24,563 with a premium of 96 points, while open interest rose by 0.01%. For the December 5 expiry series, trading activity was primarily noted at the 25,000 call strikes, with the 23,500 put strikes showcasing maximum open interest within the derivatives segment.

FII Contract Value

At the end of November expiry, the cumulative value of Nifty 50 futures open interest showed a slight decline of Rs 190 crore from Rs 28,561 crore to Rs 28,371 crore, reflecting adjustments in market positioning by investors.

Long-Short Ratio

Additionally, the total long-short ratio for foreign investors fell to 1.42 from a previous level of 1.45, further illustrating the shifting strategies employed in the current market scenario.

FII, Trading, Market