Finding the right stock in the Indian stock market is not everyone’s cup of tea. There are many factors that determine which stock is right for investment and which is not. One needs to have the right set of knowledge and information to be able to pick stock correctly. One of the ways of determining is finding a stock where FII buying is taking place. Therefore, in this article, we shall have a look at the ways through which you can learn and know which stocks are seeing FII buying.
FII buying is critical for Indian stock markets. DII buying support the market but FII buying drives the market to altogether new level. Take any past instance where stocks or nifty have shown big swings, the contribution of FII is big. The exit of FII from stock can prove to be mayhem on the price. Recent examples when stocks tumbled on FII selling include names like PC Jeweller, Vakrangee, etc.
How to find out FII Buying Stocks?
1. FII/FPI Trading Activity:
NSE India publishes the data of FII trading activity on daily basis. The data can prove to be very helpful if you are looking to invest for long term. By checking the FII trading activity signals you can know which stock are facing FII buying or selling. FIIs mostly prefer investing in frontline stocks that are part of Nifty. In fact, if you want to invest in mid-caps or small caps you can check the trading data of FIIs in those stocks. To conclude, it would not be wrong to say that FII/FPI trading activity help in determining the long-term trend of a stock.
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2. Volume and Delivery
An unusual rise in volume and delivery percentage of stocks also helps in detecting FII buying. Generally, the FIIs target the leading company of any theme where they expect good growth in the future. Like for example, the leading company in consumption theme is HUL and any big buying by FII can lead to a spurt in its volume and delivery percentage.
3. Themes or Sector
FIIs invest in any sector or theme for the long term. In fact, their selection is on the basis of the future potential of any sector. If they are bullish on any sector, they invest in a stock that can give them a good return in the long run. There are many favourite themes in the market currently like consumption, banking, pharma and so on. Nothing is permanent in the stock market and the list can change too.
When you start tracking many things in the stock market, you might miss out on some of the news. Therefore, searching for news on Google about FII buying will ease up the process of picking up stocks. All you need to do is put some common keywords like FII buying, NSE FII, FII Selling, FII Stocks etc. in Google search to get the news.
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5. Quarterly Reports
Quarterly reports of the company help in knowing the stocks FIIs are picking. In fact, you would notice that the stocks in which FIIs reduce their holding start to fall and many other investors also start to offload their holdings. This is because FIIs decrease their holding when they believe the sector or company will not perform well going ahead. Similarly, stocks seeing FII buying find new investors and stock price tend to increase.
By following the above points the investors can know which stocks FIIs are buying. However, one must keep in mind that FII buying in any stock does not ensure that the stock shall perform the best from the rest. In fact, it is just one of the parameter to help the investor to park his savings. In addition, the investor investing in stocks for long-term must also conduct their own research and analysis about the company or the sector before investing the money.
Nifty Trading Academy provides stock market education to the beginners and investors in the stock market. We have our own in-house professionals and experts who help you to understand the technical charts of the stock. By joining our learning sessions you can understand reading the charts of the stocks. Furthermore, on that basis, you can make long-term investment decisions and even become a successful intraday.
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I am Hitendra Dixit. I am a civil engineer, at the age of 47 I have changed my profession and came in to stock market. I got excellence award for best share market training institute in India. I provide training in live market, during training sessions I do trade with real money in front of members. Many of my members left their job and became a professional trader with my support and guidance.