FIIs have sold about US$11bn since October 2021 as compared to US$ 9bn selling in 2008. Many experts claim that still our market has not fallen like it had in 2008-09.
Let’s understand the FII selling intensity and its impact on our market. A Thread.🧵(1/7)

Data shows that the cumulative FDI inflow in Indian market till 2008 was US$ 82.3bn. During 2008 global financial crisis FDIs have sold US$ 9bn in Indian market (which is almost 11% of total investments) which led to a big fall in Indian indices.
PC: https://t.co/n45qCQMUP8
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If you see the cumulative FDI inflow in Indian market from 2000 to 2021, then it is US$ 763bn (Yes!). FIIs have sold only US$11bn since October 2021, which is 'just' 1.5% of their total investments so far in Indian market.
Source: https://t.co/n45qCQMUP8
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If you further dig deeper, the FIIs have cumulatively invested approx. US$195bn in Indian markets from 2000-21, the valuations of which have been appreciated to US$ 763bn. (That gives 3.9x gains on their investments so far.)
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That means despite the recent selling by FIIs in Indian equities, FIIs are still sitting on significant gains and overall stock-to-flow ratio or gains on their total investments continues to be very high.
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Further, if you look in rupee terms then approx.11 lakh crores have been cumulatively invested by FIIs in India so far, which is now valued at almost 57 lakh crores, which gives more than 5x gains on their investments.(Ratio appears lower in $ due to rupee depreciation). (6/7)
FIIs have sold only 1.5% of their total investments so far in Indian market since October 2021. Imagine what would happen to the Indian market if FIIs sell 11% of their total investments (which is approx. US$ 83bn!) like they had sold in 2008. I hope that would not happen.
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A THREAD ON @SarangSood

Decoded his way of analysis/logics for everyone to easily understand.

Have covered:
1. Analysis of volatility, how to foresee/signs.
2. Workbook
3. When to sell options
4. Diff category of days
5. How movement of option prices tell us what will happen

1. Keeps following volatility super closely.

Makes 7-8 different strategies to give him a sense of what's going on.

Whichever gives highest profit he trades in.


2. Theta falls when market moves.
Falls where market is headed towards not on our original position.


3. If you're an options seller then sell only when volatility is dropping, there is a high probability of you making the right trade and getting profit as a result

He believes in a market operator, if market mover sells volatility Sarang Sir joins him.


4. Theta decay vs Fall in vega

Sell when Vega is falling rather than for theta decay. You won't be trapped and higher probability of making profit.