🌙 FII/DII Evening Report — Fri, 5 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 (05-Jun-2026)

FII: Buy ₹11,045 Cr | Sell ₹19,821 Cr | Net -₹8,776 Cr ▼

DII: Buy ₹22,779 Cr | Sell ₹13,646 Cr | Net +₹9,134 Cr ▲

Combined Net: +₹357 Cr

Participant Long Short Net Direction vs FII

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FII 25,958 293,664 -267,706 Short — ★

DII 66,330 28,937 +37,393 Long Opposed

Client 286,458 78,010 +208,448 Long Opposed

Pro 62,649 40,784 +21,865 Long Opposed

📊 INSTRUMENT WISE FUTURES SIGNAL (05-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 -3,138 -1,288 -0.07 Weak Bearish Long Unwinding —

NIFTY -3,711 +743 -0.15 Weak Bearish Short Buildup 23,366.70 -49.85 (-0.21%)

BANKNIFTY +361 -1,591 +0.02 Neutral Short Covering 54,496.25 +188.40 (+0.35%)

FINNIFTY +6 -2 +0.09 Weak Bullish Short Covering 25,056.80 +25.55 (+0.10%)

MIDCPNIFTY +209 -439 +0.17 Moderate Bullish Short Covering 14,107.50 -78.80 (-0.56%)

NIFTYNXT50 -3 +1 -0.09 Weak Bearish Short Buildup 70,191.95 +181.00 (+0.26%)

STOCK +12,160 +15,624 +0.02 Neutral Long Buildup —

👥 PARTICIPANT OI (05-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 -2,67,706 -1.00 Strong Bearish

DII +37,393 +0.64 Strong Bullish

Client +2,08,448 +1.00 Strong Bullish

Pro +21,865 -1.00 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 +7,00,978 +0.78 Strong Bullish

DII -42,74,691 -0.61 Strong Bearish

Client +30,38,670 +1.00 Strong Bullish

Pro +5,35,043 +0.40 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 -2,76,059 -0.01 +5,30,228 -0.13 -0.07 Weak Bearish

DII +7,899 +1.00 +23,840 +0.80 +0.90 Strong Bullish

Client +87,131 -0.06 -8,11,403 +0.38 +0.32 Strong Bullish

Pro +1,81,028 +0.12 +2,57,336 -0.22 -0.10 Weak 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 -1,16,866 -0.57 +85,131 -0.32 -0.44 Strong Bearish

DII -2,72,182 -0.94 +21,289 +1.00 +0.06 Weak Bullish

Client +9,24,915 +0.46 -3,88,816 +0.45 +0.46 Strong Bullish

Pro -5,35,867 -0.59 +2,82,396 -0.13 -0.36 Strong Bearish

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.

FII's conviction intensified to extreme bearish -3/3 as all three signals aligned in selling — index futures OFR collapsed to -1.00 Strong Bearish, index options Combined OFR turned -0.07 Weak Bearish, and cash outflow accelerated to ₹8,776 Cr, nearly double Thursday's ₹4,447 Cr. This is genuine directional conviction, not hedging — cash and futures both point the same direction with matching bearish signals across derivatives, and the conviction score shows no hedging warning active. However the composition reveals a critical split: FII sold index futures aggressively while simultaneously building long stock futures positions with +0.78 Strong Bullish OFR, meaning FII is rotating out of index exposure into individual stock conviction, not abandoning equities entirely. DII continued absorbing with ₹9,134 Cr inflow to reach ₹33,933 Cr for the week, while Client and Pro both remained long in index futures at +1.00 OFR each, creating a three-against-one battle table where domestic institutions and retail are positioned opposite to FII's index shorts — historically this favors FII at inflection points but the stock futures divergence suggests FII's conviction is selective rather than systemic.

Thursday morning established weak bearish conviction -1/3 with options turning bullish and FSR collapsing, signaling the midweek bearish peak was exhausting into mechanical hedging. Today's close broke that pattern decisively — conviction rebounded to extreme -3/3 with all signals realigning bearish and cash outflow nearly doubling, indicating FII found fresh conviction to extend selling rather than capitulating as Thursday suggested. This is a genuine reversal of the Thursday exhaustion signal and marks the most aggressive FII selling day of the week.

FII has now sold for five consecutive sessions with cumulative outflow of ₹31,114 Cr, but today's extreme conviction -3/3 combined with the stock futures long buildup reveals this is not a blanket equity exit but a tactical rotation from index hedges into stock selection, suggesting FII still believes in individual stock value despite index concerns. DII's consistent absorption across all five days at ₹33,933 Cr total has created a structural domestic floor that is holding firm, and with Client-Pro both long against FII's index shorts, the institutional environment entering tomorrow is one where FII's index selling faces mounting domestic resistance while their stock conviction remains intact — a setup where further index weakness would likely trigger domestic institutional support rather than capitulation.

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.