How To Check FII LONG/SHORT Data to Trade Better?

Summary

In this insightful video, Pierre Zumba shares how to analyze the futures and options market by examining the positions of Foreign Institutional Investors (FIIs). He guides viewers on where to find critical data on the National Stock Exchange (NSE) website, emphasizing the significance of long and short positions. By demonstrating how to calculate these positions, Pierre reveals a balanced market sentiment, with current FII short positions significantly reduced. He highlights the power of retail investors aligning with FIIs, ultimately suggesting that the market is likely to find support around the 8000 level in the Nifty index until the end of April.

Takeaways

• 📊 Takeaway 1: Pierre Zumba highlights that data on long and short positions of Foreign Institutional Investors (FIIs) can be accessed via CNBC or the NSE India website.
• 📈 Takeaway 2: To find detailed trading data, users can navigate to 'Products' and 'Equity Derivatives' on the NSE India site and download the daily reports.
• 📉 Takeaway 3: The daily reports include information about contracts traded, total turnover, open interest, and participants' positions, essential for market analysis.
• 🔍 Takeaway 4: The specific participant-wise open interest report provides insights into FIIs' positions in index futures and stocks.
• 🧮 Takeaway 5: Zumba explains how to calculate the percentage of long and short positions: Long Position Percentage = (Long Position / Total Position).
• 📉 Takeaway 6: As of the latest data, FIIs hold a 44% long position and a 56% short position in index futures.
• 📈 Takeaway 7: In stocks, the FII long position is significantly higher at 70%, with a short position of only 30%.
• 🤝 Takeaway 8: Zumba uses an analogy involving 'rowdies' to illustrate how the combination of retail investors and FIIs can strengthen market sentiment.
• 🔮 Takeaway 9: He notes a shift in sentiment, with FIIs previously holding an 85% short position at an index level of 12,000, now reduced to 56%.
• 💡 Takeaway 10: Zumba anticipates that the Nifty index will find support at 8,000 until the end of April, indicating a bullish outlook for the market.

Q & A

What is the main source of data for long and short positions mentioned by Pierre Zumba?

Pierre Zumba suggests watching CNBC in the morning, as they provide statistics on long and short positions.

Where can one find detailed trading data on futures and options in India?

Detailed trading data can be found on the NSE India website under the 'Products' section, specifically in equity derivatives.

What specific data can be accessed from the NSE India market report?

The NSE India market report provides information such as the number of contracts traded, total turnover, open interest, and participant-wise trading volume.

What percentage of long positions do FIIs hold in index futures according to the transcript?

As of the latest data, FIIs have a long position of 44% in index futures.

How does Pierre Zumba recommend calculating the percentage of long and short positions?

To calculate the percentage of long positions, divide the number of long contracts by the total number of contracts (long plus short).

What is the significance of the 70% long position in individual stocks mentioned by Zumba?

A 70% long position indicates a bullish sentiment among FIIs in individual stocks, suggesting they are optimistic about stock performance.

What analogy does Pierre Zumba use to explain the dynamics between institutional and retail investors?

Zumba uses the analogy of 'rowdies' to describe how retail investors often align with FIIs, making their combined influence more powerful in the market.

What was the FII short position when the index was trading around 12,000?

When the index was trading around 12,000, the FII short position was approximately 85%.

What support level for Nifty does Pierre Zumba expect until the end of April?

Zumba expects Nifty to find support at 8000 until the end of April.

What overall market sentiment does Pierre Zumba convey regarding the potential for market declines?

Zumba believes that the markets are not likely to fall significantly from their current levels due to the lower short positions held by FIIs.