FII Trading Strategy | Key Details About FII Positions for July 22 Trading
International institutional investors continued to be net buyers in cash, index options, and stock futures; on Friday, however, they continued to be net sellers in index futures and stock options.
image for illustrative purpose
Foreign institutional investors (FIIs) continued their buying spree in stock futures, index options, and the cash market on Friday while maintaining a selling trend in stock options and index futures. In the cash segment, overseas investors extended their net buying streak in Indian equities for the fifth consecutive session.
FIIs in the Cash Market
According to provisional data from the National Stock Exchange (NSE), foreign portfolio investors accumulated stocks worth Rs 1,506 crore. Conversely, domestic institutional investors persisted as net sellers for the fifth consecutive session, offloading equities valued at Rs 462 crore, as per NSE data. In 2024 thus far, FIIs have amassed Indian equities worth Rs 33,973 crore, based on data from the National Securities Depository Ltd., as updated till the previous trading day.
FIIs in Futures and Options
Leading up to the July 25 expiry, there has been a reduction in the outstanding positions, known as open interest, for FIIs in Nifty Futures. Specifically, foreign investors reduced their long positions by 23,725 contracts for the July expiry while increasing their futures positions by 8,342 contracts. Additionally, FIIs were sellers in index futures amounting to Rs 2,029 crore and stock options worth Rs 571.54 crore. On the other hand, they bought index options worth Rs 15,824 crore and stock futures worth Rs 1,108 crore.
F&O Cues
The Nifty July futures have declined by 1.13% to 24,529.1, trading at a discount of 1.8 points, accompanied by a decrease in open interest by 6.22%. Meanwhile, Nifty Bank July futures are down 0.8% at 52,270.65, trading at a premium of 5 points, with a decline in open interest by 5.97%. Looking at the open interest distribution for the Nifty 50 July 25 expiry series, the most active strikes were the 25,500 call options, while the 23,500 put options showed the highest open interest. In the Bank Nifty options for July 24 expiry, the maximum open interest for calls was at 56,000, and for puts, it was at 52,000.
FII Contract Value
The total open interest in Nifty 50 Futures decreased by Rs 2,717 crore from Rs 37,347 crore the previous day to Rs 34,630 crore by the end of the July expiry. Similarly, the total open interest in Nifty Bank Futures decreased by Rs 729 crore from Rs 10,904 crore the previous day to Rs 10,175 crore by the end of the July expiry.
Long-Short Ratio
The overall long-short ratio for foreign investors held steady at 1.36.
