Alert:- What FIIs are doing after Budget and RBI Rate cut event..........................05.03.2015

Union Budget 2015-16 presented on 28th February 2015 which was very important for the market and we also saw the huge volatility on that day. Lets have a look on FIIs Trading Activities in Feb 2015 which will clear FIIs activity in the market before budget:

There were 20 trading session in Feb 2015. 

FIIs sold in 12 Trading Sessions and Buy in 8 Trading Sessions.

FIIs Total Buy in Index Futures in 8 Trading Sessions = Rs. 6032.56 Cr.

FIIs Total Net Sell in Index Futures in 12 Trading Session= Rs. -8046.30

After analyzing the above data, it is clear that FIIs have sold Rs. -8046.30 Index Futures before the Union Budget and Selling Trading Sessions were more in comparison Buying Trading Sessions. Means FIIs were not positive on the budget that's why buying was not coming from them and finally FIIs sold Rs. -2013.74 Cr. in Index Futures on net basis (Rs. 6032.56 Cr (Total Buy Amount) - Rs. 8046.30 (Total Sell Amount).

Note:- FIIs are already sit on big profits (Rs. 9674.37 Cr. @ 7402.72 at Nifty Spot Level Basis) Which is on Mark to Market Basis on 2014 basis Refer Article:- "http://nifty-analysis.blogspot.in/2015/01/what-fiis-are-doing-in-nifty-future-in.html". 

Lets have a look on FIIs Trading Activity from 01st Jan to 04th March 2015.

After analyzing the above table, it is clear that FIIs have given the Book Profit Signal in their major Long Position in Index Futures, as already sold Rs. -2013.74 Cr. in Feb 2015. Union Budget and RBI Policy event have already happened and RBI has become cut the repo rate also. All the major events have been discounted and no other major event is there. It may be possible that FIIs may book more profit in their long positions further.