🌅 FII/DII Morning 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 (01-Jun-2026)

FII: Buy ₹17,726 Cr | Sell ₹21,638 Cr | Net -₹3,912 Cr ▼

DII: Buy ₹15,226 Cr | Sell ₹10,117 Cr | Net +₹5,109 Cr ▲

Combined Net: +₹1,197 Cr

Participant Long Short Net Direction vs FII

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FII 26,822 250,002 -223,180 Short — ★

DII 69,661 34,473 +35,188 Long Opposed

Client 260,863 88,077 +172,786 Long Opposed

Pro 51,681 36,475 +15,206 Long Opposed

📊 INSTRUMENT WISE FUTURES SIGNAL (01-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 -21,871 +12,067 -0.50 Strong Bearish Short Buildup —

NIFTY -16,170 +13,504 -0.52 Strong Bearish Short Buildup 23,382.60 -165.15 (-0.70%)

BANKNIFTY -5,148 -1,838 -0.46 Strong Bearish Long Unwinding 53,643.10 -596.10 (-1.10%)

FINNIFTY -163 +219 -0.68 Strong Bearish Short Buildup 25,008.45 -345.55 (-1.36%)

MIDCPNIFTY -393 +185 -0.38 Strong Bearish Short Buildup 14,264.85 -210.05 (-1.45%)

NIFTYNXT50 +3 -3 +0.13 Weak Bullish Short Covering 69,921.85 -1,151.80 (-1.62%)

STOCK -6,412 +42,748 -0.01 Neutral Short Buildup —

👥 PARTICIPANT OI (01-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 -2,23,180 -1.00 Strong Bearish

DII +35,188 -0.42 Strong Bearish

Client +1,72,786 +1.00 Strong Bullish

Pro +15,206 +0.62 Strong Bullish

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 +6,39,800 -0.15 Moderate Bearish

DII -40,95,713 -0.38 Strong Bearish

Client +29,50,962 -0.59 Strong Bearish

Pro +5,04,951 +1.00 Strong 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 -2,53,687 +0.11 +4,94,046 -1.00 -0.89 Strong Bearish

DII +6,551 +0.33 +25,337 +1.00 +0.67 Strong Bullish

Client +2,66,822 +0.10 -7,95,320 +0.02 +0.06 Weak Bullish

Pro -19,686 -0.33 +2,75,938 +0.14 -0.19 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 -84,882 -0.31 +33,402 -0.11 -0.21 Moderate Bearish

DII -1,48,391 -1.00 +25,677 +1.00 +0.00 Neutral

Client +6,27,923 +0.49 -3,24,064 +0.28 +0.39 Strong Bullish

Pro -3,94,650 -0.48 +2,64,985 -0.22 -0.35 Strong Bearish

S1 Futures OFR : -1 (Bearish)

S2 Options OFR : -1 (Bearish)

S3 Cash Market : -1 (Threshold: ₹3,700 Cr)

Total : -3/3 → Strong 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.

FII sold ₹3,912 Cr in cash while simultaneously building short index futures positions with strong bearish FSR of -0.52 on Nifty and -0.50 across all index futures combined. Index futures OFR was -1.00 (strong bearish) and index options combined OFR was -0.89 (strong bearish) — both derivatives instruments aligned in the same bearish direction, confirming this is genuine directional conviction, not hedging. The conviction score registered -3 (strong bearish) across all three independent signals: futures OFR, options OFR, and cash selling all pointed the same direction. DII absorbed ₹5,109 Cr of buying, providing a domestic institutional floor while FII exited, but this support was insufficient to offset the magnitude of FII's directional selling.

This is only the first trading day of the week with FII already -₹3,912 Cr and building short positions with maximum conviction. The pattern is unambiguous — FII entered Monday with a clear bearish directional view expressed simultaneously across cash market, index futures, and index options, not a defensive hedge or routine rebalancing. Stock futures showed short buildup as well with FSR of -0.01 (neutral), indicating FII's bearish conviction is concentrated in index positioning rather than individual stock selection.

FII arrived at the week with a fresh bearish directional stance established on day one with strong conviction across all three signal dimensions. DII's counter-buying of ₹5,109 Cr suggests domestic institutions see value at current levels, but they are now opposing FII's directional short positioning rather than supporting it — a structural shift from typical floor-building behavior. Clients and prop traders are both long in index futures (net +172,786 and +15,206 respectively), positioned opposite to FII's dominant short of -223,180, which historically favors FII's directional accuracy at inflection points.

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.