🌅 FII/DII Morning 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 (04-Jun-2026)

FII: Buy ₹14,013 Cr | Sell ₹18,460 Cr | Net -₹4,447 Cr ▼

DII: Buy ₹16,824 Cr | Sell ₹12,464 Cr | Net +₹4,360 Cr ▲

Combined Net: -₹87 Cr

Participant Long Short Net Direction vs FII

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FII 28,171 292,739 -264,568 Short — ★

DII 66,500 29,722 +36,778 Long Opposed

Client 283,258 79,589 +203,669 Long Opposed

Pro 64,404 40,283 +24,121 Long Opposed

📊 INSTRUMENT WISE FUTURES SIGNAL (04-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 -5,315 +9,755 -0.12 Weak Bearish Short Buildup —

NIFTY -6,478 +9,408 -0.18 Moderate Bearish Short Buildup 23,416.55 +10.95 (+0.05%)

BANKNIFTY +1,146 +250 +0.15 Weak Bullish Long Buildup 54,307.85 +121.90 (+0.22%)

FINNIFTY +11 -3 +0.22 Moderate Bullish Short Covering 25,031.25 +75.55 (+0.30%)

MIDCPNIFTY +5 +95 +0.01 Neutral Long Buildup 14,186.30 +37.25 (+0.26%)

NIFTYNXT50 +1 +5 +0.06 Weak Bullish Long Buildup 70,010.95 +154.55 (+0.22%)

STOCK -2,002 +17,254 -0.00 Neutral Short Buildup —

👥 PARTICIPANT OI (04-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 -2,64,568 -0.54 Strong Bearish

DII +36,778 +1.00 Strong Bullish

Client +2,03,669 +1.00 Strong Bullish

Pro +24,121 -0.38 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 +6,88,818 -0.12 Weak Bearish

DII -42,50,465 -0.87 Strong Bearish

Client +30,34,463 +1.00 Strong Bullish

Pro +5,27,184 +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 -2,73,988 -0.29 +5,16,866 +0.38 +0.09 Weak Bullish

DII +7,746 +1.00 +23,880 -1.00 +0.00 Neutral

Client +1,57,511 -0.01 -7,68,023 +0.01 +0.00 Neutral

Pro +1,08,733 +0.10 +2,27,276 -0.16 -0.06 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 -1,01,929 -0.38 +77,391 -0.30 -0.34 Strong Bearish

DII -2,61,023 -1.00 +21,953 +0.97 -0.03 Neutral

Client +8,24,242 +0.47 -3,74,382 +0.09 +0.28 Moderate Bullish

Pro -4,61,290 -0.39 +2,75,038 +0.07 -0.32 Strong Bearish

S1 Futures OFR : -1 (Bearish)

S2 Options OFR : +1 (Bullish)

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

Total : -1/3 → Weak 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 collapsed from extreme bearish -3/3 on Wednesday to weak bearish -1/3 on Thursday as index futures OFR weakened from -0.91 to -0.54 while index options Combined OFR flipped positive to +0.09, signaling the short positioning is losing aggression and transitioning from directional conviction to mechanical hedging. Cash and futures remained aligned in selling direction with ₹4,447 Cr outflow and Weak Bearish FSR of -0.12, but the simultaneous unwinding of stock futures longs while adding index shorts revealed FII rotating out of equity conviction into pure portfolio protection rather than taking a genuine bearish stance. DII absorbed ₹4,360 Cr inflow to extend the week's domestic floor to ₹24,799 Cr against FII's ₹22,338 Cr cumulative outflow, while Client and Pro both positioned long in index options at +1.00 Combined OFR each, creating structural opposition to FII's index shorts that historically favors the foreign positioning at inflection points.

FII's selling has been consistent across all four sessions but conviction is fading rather than building — the pattern started with moderate bearish conviction on Tuesday, peaked at extreme -3/3 on Wednesday with aggressive short buildup, then collapsed to weak bearish on Thursday as FSR weakened and options turned bullish. This is not a sustained directional exit but a defensive hedging cycle where FII is protecting equity exposure against near-term volatility while maintaining stock conviction, evidenced by the persistent long positioning in stock futures throughout the week despite index shorts. DII's absorption has been equally consistent at ₹4,360-₹9,589 Cr daily, establishing a genuine domestic institutional floor rather than panic buying, suggesting the domestic market structure is holding firm beneath foreign selling pressure.

FII entered the week with a deliberate bearish stance that peaked midweek at extreme conviction but is now exhausting as options positioning turns bullish and futures FSR collapses to weak levels, indicating the selling momentum has run its course and mechanical hedging is replacing directional conviction. The institutional environment a trader faces today is fundamentally different from Wednesday — foreign selling pressure is fading while domestic institutional support is building, with DII having absorbed nearly all of FII's outflow and Client-Pro positioning long against FII's shorts, creating a structural setup where further FII selling would face increasing domestic institutional resistance 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.