Nelson Graves of the District advanced to the semifinals of the Eighth Annual Insilco National BCD Squash Championships yesterday at the Capitol Hill Squash Club.

Graves will face Ken Kaufman of Westchester, N.Y., in one semifinal at 11 a.m. today, after the opening semifinal at 9. The final will be held at 1.

Bruce Haslam and Jon Banks, the other two local players in the tournament, reached the division D and C quarterfinals before losing. Haslam was ousted by Paul Russell of Seattle, 15-5, 15-18, 15-5, 15-6, and Danny Miller of Atlanta defeated Banks, 12-15, 18-13, 15-11, 13-15, 15-7.

In Division B, Graves defeated Ken Diamond of Palo Alto, Calif., 5-13, 16-15, 16-15.

"My opponent was a very fast player, covered the court well, kept the ball in play and never gave up -- the home-court advantage didn't hurt," said Graves, a reporter for the Bureau of National Affairs.

The tournament matched 48 of the nation's top amateur squash players. The players were all that remained from an opening field of 7,300, making this the world's largest squash tournament.

Stacy Parks-Victory of Los Angeles, the only woman in the field of 48, advanced to the consolation semifinals of the B division. She is believed to be only the second woman to reach the nationals, a tournament spokesman said.