Indian Stock Market: Nifty falls 3.3% on Huge Selling by FIIs

Indian Stock Markets saw massive selling by nervous investors offloading delivery stocks, and trading stop loss triggers in the Futures and Options segment. Today’s total trading volume was a new life time high for Nifty. Nifty fell 3.3% on Huge Selling by FIIs, and though the DIIs tried to buy as much as they could, the number of sellers were 3 times more and the selling pressure was unstoppable till the end.

The 9 million 5400 Put writers who thought 5400 to be safe support to sell Put options got wiped out today. Even the 9 million 5300 Put writers got wiped out — this was totally unthinkable even 1 hour before the end of the trading session. All this has happened based on real selling in stocks, something which most market players had not planned to witness — it was a result of spiking oil prices due to Libya crisis and uncertainty on when and how it will resolve or spread to other middle east nations in coming months.

Following is the combined FII trading data across NSE and BSE collated on the basis of trades executed by FIIs on 24-Feb-2011.

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category Date Buy Value Sell Value Net Value

FII 24-Feb-2011 3663.59 6365.81 -2702.22

Following is the combined DII (Domestic Institutional Investors) trading data across NSE and BSE collated on the basis of trades executed by Banks, DFIs, Insurance, MFs and New Pension System on 24-Feb-2011.

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category Date Buy Value Sell Value Net Value
DII 24-Feb-2011 2652.35 1622.43 1029.92

All major sectors lost value, with no sector spared. Now, the Nifty support is likely to come only around 5100.

Reliance Industies and Cairn India (both oil & gas companies) are the only clear buy in this market.

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