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Charts & Analysis

Chart: FIIs Relentlessly Sell In Cash Markets, But There’s Some Hope Visible in Futures and Options

FIIs continue to sell our markets. Like there’s no tomorrow! Here’s the FIIs in the cash market as we’ve seen recently:

FII Investments

Foreign investors seem spooked about something, we don’t know what. However, their positions in the futures and options market – in terms of open interest – point to a position that seems to be going less short now than they were earlier. They are cutting their short positions.

(A short position is either a short future, a long put option or a short call option)

FIIs Go Long

Note: Pro = brokers’ proprietary accounts. FII = foreign investors. Client = Indian retail clients. (Excluding domestic institutions like mutual funds, who don’t play much in F&O)

The positioning currently is that retail is cutting its long positions, while FIis have lower short positions than earlier (but are deeply net short. We haven’t decisively turned yet, but let’s hope things change next week!

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