How to track FII investments & Sector rotation?

 

What is Sector Rotation?

• Sector rotation means withdrawing money from one industry/sector & putting it in other.

• This is done because the investors/traders think that there is a better opportunity available in some other group of stocks. Hence, they chase higher returns.

• As Peter Lynch rightly said, "If you invest in the right sector at the right time, you can make a lot of money in not a very long time."

Who are FIIs & Why is tracking them necessary?

• FIIs are those investors or funds which invest outside the country in which they are registered. 

• The reason why we track them is because they usually invest large sums of money for a longer period of time & bring the up move with themselves. It is believed that if markets are going up then FIIs are buying & vice versa.

• FIIs (the smart money) often do in depth research before investing hence their presence anywhere is a major plus point for any retailer.

How can a retailer use Sector Rotation to make money?

• Well it is very simple, after you find out where the smart money is flowing, you just need to follow it while you take your future trades.

• For example lets take that you discovered FIIs have been buying a lot of banks lately, what you need to do is add all the banks in your watchlist & have a look at all of them one by one. Whichever banks look good to you in the chart, you invest in them. There may be one or more than one.

• But always remember to keep SL, if they are FIIs it doesn't mean they cannot be wrong. Afterall, they are humans too & humans tend to make mistakes. Risk management always comes first before any strategy so make sure you follow it with discipline.

And now, the biggest question & the reason behind writing this blog, 

How do I know what are the FIIs buying?

• Well, getting the data & compiling it at one place is a difficult job. But, guess what, we have a SURPRISE GIFT for you. 

• We have done the work of fetching that data & have compiled it all at one place which updates automatically every 15 days.

• Here is the google spreadsheet link for the same 👉 Click here to get the Google Spreadsheet link for Sector Wise FII Investment Analysis

ENJOY & THANKS FOR READING!