Before we look at the FII data let’s have a look at how the new series is playing out with 7 sessions done and another 9 to go.
The first chart is the BNF- the leader of the rise into April.
Net contracts are down from 63486 at the start of the series to 57859 contracts at the close of yesterday’s trading.
So clearly some long liquidation is happening there.
The Nifty chart below started the series with a net 338338 contracts.
As of yesterday’s close the series sits at 334262 contracts.
In both cases above we can clearly see new money not chasing the index higher in the Futures space unlike last month.
Coming back to the FII’s they hold a 68.7% of the total outstanding contracts on the long side in the Nifty futures.
We have seen this go up to 80- 81% at previous tops ( in itself a reason to be cautious) but at 67% it is comfortable and well placed.
The stock futures longs are at 32.7% more to do with the fact that they pur the other billions in the cash segment.
But we try to watch this space as a contra indicator.
Refer to this post made here on Stock Futures on how FII’s use this space intelligently to further gains in their positions.
And back to the series of April and the additions/ deletions in the various categories by FII’s as of yesterday’s close
Largely an equal hedge in the derivative space with no clear edge visible in the April positions for a directional move.