📖 GLOSSARY
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.
⚠️ FLAGS
Conviction score extreme (-3/3) — Strong Bearish
Client opposed to FII — divergence signal, watch FII direction
Cash flow exceeded dynamic threshold ₹3,800 Cr — S3 triggered
💰 CASH MARKET (03-Jun-2026)
FII: Buy ₹17,054 Cr | Sell ₹22,670 Cr | Net -₹5,617 Cr ▼
DII: Buy ₹17,530 Cr | Sell ₹11,789 Cr | Net +₹5,741 Cr ▲
Combined Net: +₹124 Cr
⚔️ BATTLE TABLE
Participant Long Short Net Direction vs FII
--------------------------------------------------------------
FII 25,951 285,204 -259,253 Short — ★
DII 66,156 29,722 +36,434 Long Opposed
Client 277,894 81,809 +196,085 Long Opposed
Pro 62,276 35,542 +26,734 Long Opposed
📊 INSTRUMENT WISE FUTURES SIGNAL (03-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
----------------------------------------------------------------------------------------------------------------------
INDEX -29,157 +31,983 -0.32 Strong Bearish Short Buildup —
NIFTY -29,283 +30,451 -0.40 Strong Bearish Short Buildup 23,405.60 -77.95 (-0.33%)
BANKNIFTY +433 +1,667 +0.03 Neutral Long Buildup 54,185.95 +471.30 (+0.88%)
FINNIFTY -21 -1 -0.24 Moderate Bearish Long Unwinding 24,955.70 +94.45 (+0.38%)
MIDCPNIFTY -274 -146 -0.25 Moderate Bearish Long Unwinding 14,149.05 -91.40 (-0.64%)
NIFTYNXT50 -12 +12 -0.19 Moderate Bearish Short Buildup 69,856.40 -259.40 (-0.37%)
STOCK -43,997 -37,015 -0.06 Weak Bearish Long Unwinding —
👥 PARTICIPANT OI (03-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.
INDEX FUTURES
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 -2,59,253 -0.91 Strong Bearish
DII +36,434 +1.00 Strong Bullish
Client +1,96,085 +1.00 Strong Bullish
Pro +26,734 +0.93 Strong Bullish
STOCK FUTURES
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 +6,90,820 -1.00 Strong Bearish
DII -42,14,946 -0.58 Strong Bearish
Client +30,04,497 +1.00 Strong Bullish
Pro +5,19,629 +0.34 Strong Bullish
INDEX OPTIONS
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 -2,51,345 +0.16 +5,38,004 -0.25 -0.09 Weak Bearish
DII +7,726 +1.00 +23,860 +0.00 +0.50 Strong Bullish
Client +1,62,899 -0.18 -7,60,497 +0.04 -0.14 Weak Bearish
Pro +80,722 +0.24 +1,98,634 +0.02 +0.13 Weak Bullish
STOCK OPTIONS
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 -94,084 -0.32 +69,341 -0.69 -0.51 Strong Bearish
DII -2,42,859 -1.00 +22,743 +1.00 +0.00 Neutral
Client +7,68,244 +0.60 -3,70,433 +0.81 +0.71 Strong Bullish
Pro -4,31,301 -0.48 +2,78,349 -0.24 -0.36 Strong Bearish
🎯 CONVICTION SCORE
S1 Futures OFR : -1 (Bearish)
S2 Options OFR : -1 (Bearish)
S3 Cash Market : -1 (Threshold: ₹3,800 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.
📋 ANALYST ANALYSIS
PREVIOUS SESSION ESTABLISHED FII SELLING ACROSS THREE CONSECUTIVE DAYS WITH CUMULATIVE OUTFLOW OF ₹12,275 CRORES WHILE DII ABSORBED ₹14,698 CRORES INFLOW, CREATING A DOMESTIC INSTITUTIONAL FLOOR BENEATH FOREIGN SELLING PRESSURE. Morning report showed this pattern as sustained but not yet extreme — FII was distributing positions without panic, DII was methodically buying support.
TODAY'S CLOSE EXTENDED THE ESTABLISHED PATTERN WITH IDENTICAL DIRECTIONAL CONVICTION. FII added ₹5,617 CRORES to the three-day outflow total, bringing cumulative week selling to ₹17,891 CRORES while DII continued absorbing with ₹5,741 CRORES inflow, extending the domestic floor. The critical shift: FII conviction turned from moderate to extreme. Index futures showed Strong Bearish FSR of -0.32 on Nifty with Short Buildup activity — FII aggressively added new short positions rather than merely unwinding existing longs. Index options Combined OFR turned -0.09 Weak Bearish, confirming the futures shorts are directional, not hedging. FII Conviction Score reached -3/3 Strong Bearish across all three independent signals — futures shorts, options shorts, and cash selling all aligned for the first time this week. Stock futures showed the opposite picture: FII held net long of ₹690,820 contracts while selling index futures aggressively, confirming FII is using index shorts to hedge their equity portfolio. However, stock options Combined OFR turned -0.51 Strong Bearish, meaning FII is also reducing conviction in individual stock positions. The battle table shows all three other participants — DII, Client, Pro — positioned long against FII's index shorts, historically the correct side at inflection points.
ENTERING TOMORROW, FII HAS SHIFTED FROM DISTRIBUTION TO DIRECTIONAL SHORT CONVICTION ACROSS FOUR CONSECUTIVE SESSIONS WITH CUMULATIVE OUTFLOW NOW AT ₹17,891 CRORES. DII has absorbed every rupee with ₹20,439 CRORES cumulative inflow, establishing a genuine institutional floor. The pattern is no longer routine rebalancing — FII is taking a deliberate bearish stance on the index while maintaining long equity exposure, a classic hedging posture that suggests FII expects near-term volatility but retains conviction in underlying stock selection. Conviction is building, not fading, and the domestic institutional environment is structurally bullish against foreign selling.
⚖️ DISCLAIMER
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.