FII activity – 07 Feb 2014

Cash Market : FII’s again sold 267 Cr in the cash market on friday .DII’s continue to be net buyers bidding the market up especially from the lows. Whilst they have been buyers especially on month ends previously in equity, I don’t recollect such strong cash buying figures from them in the apst 6 months for 4 days in a row.

Index Futures : The highlight of Friday’s trade in futures by FII’s was the closure of 13458 contracts which were shorted . Now they are net short by 27498 contracts added from 31st Jan. The Long liquidation however continued in the longs some of them hold.Data shows 30916 contarcts reduced in Feb series to add to the 86683 contracts they reduced in Jan series. 12102 contracts were again reduced in Friday’s trade . Overall their long exposure in Index Futures overall is 220162 contracts down from a high of 471458 contracts seen on 18th Dec.

Index Options : 61652 contracts in long calls were bought on Friday before the close. 29233 calls were shorted. They reduced 6962 long puts into the close and added 2071 short put contracts. Their option behavior was clearly bullish. It’s typical of institutional money to start or change a new trend with options, hence we watch this space closely for a change of behavior however short term it may be.

Stock Futures : Whislst folks focus on cash buy/ sell figures we also track this space to see if the selling has a more longer to intermediate term implication. FII’s added 8553 long stock futures and closed 9994 stock futures shorts on friday. Through the recent sell off in Feb series from 31st they have been buying stock specific futures . They remain net long in stock futures by 23238 contracts.

The charts for open Interest are updated by RM everyday in the evening.You will find it on the Home page under “Data that we watch”.

Our records show that out of the total Open Interest outstanding in the market the precentage held by FII’s is upwards of 80% in index futures. Hence when we say we watch this data we do mean it literally.