Hi,
I am new to the FII vs DII data.
In order to understand how this can be interpreted, i had downloaded monthly FII and DII data from moneycontrol,com for the past 13 years and upon checking, i conclude the following :
– approx 80% of the times, when FIIs net short the market , DIIs would net long the market !
Could anyone tell me why is that so ? does it generally happen ?
Thanks.
if you look dii data they long the put options if they are long in futures so they are not at loss,it is the fii who are active and their data needed to be analysed,when fii short the market they buy call options to hedge themselves.it is the change oi of fii to be analyzed
i had worked my numbers for the cash market FII & DII data and not FnO market data.
Does that make a difference?
yes if the stock is also in fno you have to look at both the bhavcopy of cash market and also of derivative to get real insight sometimes it happens to fool retail fii buy small qty in cash and creating huge short position in derivative and trap the retailers,and if you are new pls reseach only on nifty 50 or nifty 100 company
sure thanks .
some jargons are new for me but i will continue my study on them .