60% of FIIs Index longs post budget closed in 4 days .
Aggressive FII longs in Index getting closed for 4th day in row.
- This is the only pressure point for mkts since the last few days.
- We saw big chase by FIIs post budget, most of which getting closed.
- Around budget FIIs bght 220k conts in Index futs, of which 125k conts closed in last 4 days.
- Stock level activity still not much as unwinds not triggered there yet.
- We are not yet seeing any panic in stock positions from local/HNIs.
- Selling in Nifty futs percolating to Banking stocks where positions are heavy.
- This round of slide is mostly only in leverage names removing excesses.
- Hence cash market activity remains fairly muted with selective +ve bias.
- Since last few days FIIs have started buying downside protection.
- They bought 235k conts in puts over last 3 days mostly @8400-8700 strikes.
- Few more days of protection buying by FIIs can help define a low for mkts.
- 8500 puts continue to hold largest positions of $610mn.
- However upside calls still not moving lower & remain @9000 ($810mn).
- Hence as of now options market is still playing for 8500-9000 range.
