So you had a boring expiry today?
I wouldn't blame you for believing that when you saw a 66 point range today in a series which has seen many 150+ days in the Nifty.
The truth is that Fii's were extremely busy today closing out the maximum amount of Open Interest in Options today than anytime in the past six months.
Don't go by the numbers shown up on the NSE or the SEBI site for amounts. They hide more than they reveal.
Have a look at this sheet which plots their activity on expiry day since Feb of this year.
We have been saying that the expiry day is a liquidation day for these traders.
Today they closed 1229297 contracts in Options in that 66 point range which is almost the same as the entire amount of contracts they had put up in the entire September series!
That's not a small feat !
We had noted that they were max up for the series in terms of their committment and the liquidation gives them a good chance to play either side starting tomorrow.
On another note they are long in Index Futures at the start of this October series as this chart would show.
The data we are tracking courtesy some fine work by RM show that the long holding of FII's now in the Nifty is 75% of the entire longs held by the market in Nifty.
That's a strong piece of data right there and gives us reason to track these traders more closely than before.