FII’s Net Position at the end of FEB series

Through the series we have updated the daily changes in the FII’ s holdings in the FnO space.

Now let’s look at where they are at the end of the FEB series in terms of their Net Exposure

 

 

There charts below are updated by RM every day and I must say that I do not take a trading position in the morning without having a look at them.

 

The first is the screenshot of the Net in Index Futures . Since the FII’s are different entities and some of them are short whereas others would be long in the same series and instrument, this picture is their net exposure :

 

Screenshot_1

 

 

As of the close of the FEB series they held 233639 long contracts and 60019 short contracts making it a net of 173620 contracts they are now long in the market.

 

The Next Image is that of their Put Holdings. As we know now they are always long in puts and do not show a big urge to short puts at any point in time even if bullish.

 

The net long position is 277704 contracts in puts

 

Screenshot_2

Of these 358452 are long puts and shorts created in puts are only 80748 contracts.

 

The put position is used only to hedge the cash holdings and not an instrument of profit.

 

Even at the height of the downmove to 5930 earlier in the FEB series we had noted that they were not adding short puts in volumes.

 

Now the next chart is the Index Calls.

Screenshot_3

 

 

This is the favorite instrument of speculation and used extensively to trade both sides of the market

 

The net long position in calls is 28168 contracts.

 

Of these 285849 are long calls and 257681 are short calls.

 

One can see clearly the movement of the chart above vis-a-vis the Nifty.

 

There is an interesting study we are currently compiling in FII behavior in stock futures. We will leave that as a subject of a new post sometime later.

 

The charts above are updated at the close everyday by RM and are found on the Home Page under “Data that we watch”