🌙 FII/DII Evening Report — Tue, 2 Jun, 2026

FSR (Flow Strength Ratio): Range -1 to +1

Measures how one-sided FII's futures buying vs selling was — not the absolute size but the relative aggression. Two sessions with identical net contracts can have very different FSR values depending on total activity.

Positive = FII bought more contracts than sold (bullish flow)

Negative = FII sold more contracts than bought (bearish flow)

Strength: >=0.30 Strong | >=0.15 Moderate | >=0.05 Weak | <0.05 Neutral

Reliability: Nifty most reliable → BankNifty → MidCap Nifty → FinNifty and NiftyNext50 least reliable. Stock futures is a broad signal only — individual stock breakdown not available.

OFR (OI Flow Ratio): Range -1 to +1

Measures how a participant's accumulated long and short positions shifted compared to the previous session — not how much they traded today but how their total positioning changed.

Positive = participant adding longs or closing shorts (bullish positioning shift)

Negative = participant adding shorts or closing longs (bearish positioning shift)

Strength: >=0.30 Strong | >=0.15 Moderate | >=0.05 Weak | <0.05 Neutral

Caution: Futures OFR is especially misleading for FII because portfolio hedging inflates their futures positions. For DII, Client, and Pro, futures OFR is more likely directional but still less reliable than options Combined OFR. Always prefer options Combined OFR over futures OFR when they conflict.

Combined OFR: Range -1 to +1

Merges Call OFR and Put OFR into one unified options signal per participant. Shown for options rows only — futures rows show dash because futures have only one OFR value.

When Call and Put OFR agree — high confidence directional signal.

When Call and Put OFR conflict — dominant side wins but with reduced conviction. The conflict itself is meaningful.

Put OFR sign is automatically flipped so positive always means bullish — consistent with calls and futures.

Strength: >=0.30 Strong | >=0.15 Moderate | >=0.05 Weak | <0.05 Neutral

Signals:

Long Buildup = OI up + Net Buy → fresh longs added, bullish

Short Buildup = OI up + Net Sell → fresh shorts added, bearish

Short Covering = OI down + Net Buy → shorts being closed, bullish

Long Unwinding = OI down + Net Sell → longs being closed, bearish

Conviction Score (S1+S2+S3): Range -3 to +3

Three independent FII signals combined — futures positioning shift, options positioning shift, and actual cash deployment.

S1 = Index Futures OFR → >+0.05 bullish | <-0.05 bearish | else neutral

S2 = Index Options Combined OFR → same thresholds

S3 = FII Cash Net vs dynamic threshold (75th pctile of past 1yr flows)

+3 Strong Bullish | +2 Moderate Bullish | +1 Weak Bullish | 0 Neutral

-1 Weak Bearish | -2 Moderate Bearish | -3 Strong Bearish

Hedging Warning: fires when S1=S2 but S3 contradicts — FII using derivatives to hedge equity portfolio, not a directional bet. Do not treat conviction score as directional when active.

Battle Table:

Positive net = net long (bullish) | Negative net = net short (bearish)

Neutral = less than 2% directional bias

Aligned = same direction as FII | Opposed = opposite to FII

★ = Dominant participant (largest absolute net position)

When Client Opposed to FII → historically FII tends to be correct at inflection points.

💰 CASH MARKET (02-Jun-2026)

FII: Buy ₹16,956 Cr | Sell ₹25,319 Cr | Net -₹8,363 Cr ▼

DII: Buy ₹22,509 Cr | Sell ₹12,919 Cr | Net +₹9,589 Cr ▲

Combined Net: +₹1,226 Cr

Participant Long Short Net Direction vs FII

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FII 24,538 254,634 -230,096 Short — ★

DII 65,965 33,084 +32,881 Long Opposed

Client 269,410 82,885 +186,525 Long Opposed

Pro 45,586 34,896 +10,690 Long Opposed

📊 INSTRUMENT WISE FUTURES SIGNAL (02-Jun-2026)

Note: Net Contracts = Today's buy contracts - today's sell contracts. Positive = FII bought more than sold. Negative = FII sold more than bought.

OI Change = Change in total open interest vs previous day. Positive = new contracts added (OI increased). Negative = contracts squared off (OI reduced).

Instrument Net Contracts OI Change FSR Strength Signal Price & Change

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INDEX -6,916 +2,348 -0.15 Weak Bearish Short Buildup —

NIFTY -7,619 +7,927 -0.23 Moderate Bearish Short Buildup 23,483.55 +100.95 (+0.43%)

BANKNIFTY +814 -5,432 +0.06 Weak Bullish Short Covering 53,714.65 +71.55 (+0.13%)

FINNIFTY -42 +34 -0.62 Strong Bearish Short Buildup 24,861.25 -147.20 (-0.59%)

MIDCPNIFTY -68 -182 -0.07 Weak Bearish Long Unwinding 14,240.45 -24.40 (-0.17%)

NIFTYNXT50 -1 +1 -0.08 Weak Bearish Short Buildup 70,115.80 +193.95 (+0.28%)

STOCK +95,017 -88,113 +0.12 Weak Bullish Short Covering —

👥 PARTICIPANT OI (02-Jun-2026)

Note: All participant OI data is combined across all expiries — NSE F&O data only. Not expiry specific. Current month contracts are the most liquid — majority of activity happens there — data can be used accordingly.

Conviction Score is available for FII only. For DII, Client, and Pro — use options Combined OFR as their primary directional signal. Futures OFR is especially misleading for FII due to portfolio hedging — less so for DII, Client, and Pro who are more likely directional.

Note: Net OI = Long OI - Short OI. This is NOT daily buy/sell — it is the total accumulated position. Positive = longs are more than shorts. Negative = shorts are more than longs.

FII negative Net OI does not always mean FII is heavily bearish — FII may use index futures to hedge their equity portfolio. However if options Combined OFR also turns bearish simultaneously, it is genuine directional conviction, not hedging. Always cross-check with options Combined OFR and FII Conviction Score before concluding.

Participant Net OI OFR Strength

FII -2,30,096 -1.00 Strong Bearish

DII +32,881 -0.45 Strong Bearish

Client +1,86,525 +1.00 Strong Bullish

Pro +10,690 -0.59 Strong Bearish

Note: Net OI = Long OI - Short OI. This is NOT daily buy/sell — it is the total accumulated position. Positive = longs are more than shorts. Negative = shorts are more than longs.

FII negative Net OI does not always mean FII is heavily bearish — FII may use stock futures to hedge individual stock positions. However if options Combined OFR also turns bearish simultaneously, it is genuine directional conviction. Always cross-check with options Combined OFR and FII Conviction Score before concluding.

Participant Net OI OFR Strength

FII +7,34,817 +1.00 Strong Bullish

DII -41,73,443 -0.58 Strong Bearish

Client +29,37,778 -0.84 Strong Bearish

Pro +5,00,848 -0.27 Moderate Bearish

Note: Call Net OI = Call Long - Call Short. Positive = net long calls (bullish). Negative = net short calls (bearish).

Put Net OI = Put Long - Put Short. Positive = net long puts (bearish). Negative = net short puts (bullish).

Always prefer Combined OFR for options — it gives the complete directional picture.

Participant Call Net OI Call OFR Put Net OI Put OFR Combined OFR Combined Strength

FII -2,79,783 -0.05 +4,95,102 -0.01 -0.03 Neutral

DII +7,221 +1.00 +23,860 +1.00 +1.00 Strong Bullish

Client +2,91,940 +0.01 -7,24,012 -0.05 -0.04 Neutral

Pro -19,378 +0.00 +2,05,051 +0.12 +0.06 Weak Bullish

Note: Call Net OI = Call Long - Call Short. Positive = net long calls (bullish). Negative = net short calls (bearish).

Put Net OI = Put Long - Put Short. Positive = net long puts (bearish). Negative = net short puts (bullish).

Always prefer Combined OFR for options — it gives the complete directional picture.

Participant Call Net OI Call OFR Put Net OI Put OFR Combined OFR Combined Strength

FII -77,593 +0.16 +42,649 -0.23 -0.07 Weak Bearish

DII -2,15,324 -1.00 +25,345 +1.00 +0.00 Neutral

Client +6,58,577 +0.19 -3,23,272 -0.01 +0.18 Moderate Bullish

Pro -3,65,660 +0.23 +2,55,278 +0.10 +0.16 Moderate Bullish

S1 Futures OFR : -1 (Bearish)

S2 Options OFR : +0 (Neutral)

S3 Cash Market : -1 (Threshold: ₹3,800 Cr)

Total : -2/3 → Moderate Bearish

Hedging Warning : Not Active

Note: Conviction Score is FII only. For DII, Client, and Pro — use options Combined OFR as their primary directional signal. Futures OFR is especially misleading for FII due to portfolio hedging — for other participants it is more likely directional but options Combined OFR remains the stronger signal.

Morning report on 01-Jun showed FII selling ₹3,912 Cr in cash with index futures short buildup and moderate bearish conviction score of -2, establishing the opening pattern of the week as defensive selling with DII providing domestic support at ₹5,109 Cr.

FII accelerated cash selling to ₹8,363 Cr on 02-Jun, nearly doubled the prior day's outflow, with index futures short buildup intensifying to moderate bearish FSR of -0.23 on Nifty and conviction score holding at -2 — the pattern is not reversing but deepening across consecutive sessions.

FII sold ₹8,363 Cr in cash while building index futures shorts with weak-to-moderate bearish FSR, and index options combined OFR remained neutral at -0.03 — this is not hedging but genuine directional selling, with cash and futures aligned in the same bearish direction. Stock futures tell a different story: FII holds strong bullish OFR of +1.00 with net long of ₹734,817 contracts, indicating FII is simultaneously reducing index exposure while maintaining or building individual stock positions, a classic rotation from index to stock selection.

All three other participants oppose FII's short positioning — DII long ₹32,881, Client long ₹186,525, Pro long ₹10,690 in index futures — with Client holding the largest absolute position and directly opposed to FII's shorts. Historically this configuration favors FII at inflection points, but the fact that domestic institutions are absorbing FII selling without breaking suggests the domestic floor is holding firm despite the outflow intensity.

FII has now sold ₹12,275 Cr across two consecutive sessions with accelerating magnitude and consistent short buildup in index futures, while DII has absorbed ₹14,698 Cr of inflows to provide support — this is a sustained institutional rotation where foreign money is exiting the index while domestic capital is stepping in. The conviction is moderate bearish on indices but FII's strong bullish positioning in stock futures suggests they are not abandoning India but rotating from broad index exposure into stock-specific conviction, a positioning shift that typically precedes sector or stock-level volatility rather than a broad market reversal.

All metrics are for informational and analytical purposes only. Signals reflect past positioning and do not guarantee future market direction. This report reflects prior day data — it is not live data, as exchanges do not provide FII/DII data in real time. Past data does not reflect future directional activity of FII/DII. Do your own research before making any trading or investment decisions. This is not financial advice. Always consult a SEBI registered financial advisor before taking any decision.