🌅 FII/DII Morning Report — Wed, 10 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 (09-Jun-2026)

FII: Buy ₹14,735 Cr | Sell ₹19,302 Cr | Net -₹4,566 Cr ▼

DII: Buy ₹17,665 Cr | Sell ₹11,506 Cr | Net +₹6,159 Cr ▲

Combined Net: +₹1,593 Cr

Participant Long Short Net Direction vs FII

--------------------------------------------------------------

FII 31,170 308,171 -277,001 Short — ★

DII 65,697 15,637 +50,060 Long Opposed

Client 282,229 77,643 +204,586 Long Opposed

Pro 62,075 39,720 +22,355 Long Opposed

📊 INSTRUMENT WISE FUTURES SIGNAL (09-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 +613 +12,107 +0.02 Neutral Long Buildup —

NIFTY -6,035 +7,137 -0.33 Strong Bearish Short Buildup 23,242.10 +119.10 (+0.52%)

BANKNIFTY +6,865 +4,753 +0.63 Strong Bullish Long Buildup 55,194.50 +1,130.75 (+2.09%)

FINNIFTY +14 +2 +0.50 Strong Bullish Long Buildup 25,152.45 +347.45 (+1.40%)

MIDCPNIFTY -232 +216 -0.39 Strong Bearish Short Buildup 14,180.80 +186.05 (+1.33%)

NIFTYNXT50 +1 -1 +0.06 Weak Bullish Short Covering 69,945.85 +970.45 (+1.41%)

STOCK +38,462 +21,512 +0.07 Weak Bullish Long Buildup —

👥 PARTICIPANT OI (09-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 -2,77,001 +0.05 Weak Bullish

DII +50,060 +1.00 Strong Bullish

Client +2,04,586 -0.51 Strong Bearish

Pro +22,355 -0.16 Moderate 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 +7,38,211 +1.00 Strong Bullish

DII -43,12,393 -0.81 Strong Bearish

Client +30,15,620 +1.00 Strong Bullish

Pro +5,58,562 -1.00 Strong 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 -2,66,470 +0.06 +5,27,058 +0.09 +0.08 Weak Bullish

DII +7,879 +0.33 +23,857 +0.00 +0.17 Moderate Bullish

Client +2,33,125 +0.01 -7,28,482 -0.05 -0.04 Neutral

Pro +25,466 -0.05 +1,77,567 +0.11 +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 -1,35,206 -0.26 +1,02,336 -0.38 -0.32 Strong Bearish

DII -3,44,627 -1.00 +19,479 +1.00 +0.00 Neutral

Client +10,57,972 +0.10 -3,91,503 -0.52 -0.43 Strong Bearish

Pro -5,78,139 +0.48 +2,69,688 +0.56 +0.52 Strong Bullish

S1 Futures OFR : +1 (Bullish)

S2 Options OFR : +1 (Bullish)

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

Total : +1/3 → Weak Bullish

⚠️ HEDGING WARNING: ACTIVE — FII using derivatives to hedge cash, not a directional bet

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 ₹4,566 Cr in cash while building index futures longs with Neutral FSR of +0.02, but index options Combined OFR turned bullish at +0.08 — this contradiction between cash selling and derivative buying triggered the hedging warning, confirming FII is using index shorts to protect equity holdings rather than expressing directional conviction. Stock futures revealed the genuine positioning: FII accumulated +38,462 net contracts with Strong Bullish FSR of +0.07 and +1.00 OFR, showing aggressive stock long buildup while hedging the index through cash sales. The battle table shows all three other participants long index futures while FII remained net short at -277,001, but this short is defensive portfolio protection, not a bearish directional bet — stock options Combined OFR at -0.32 Strong Bearish contradicts the stock futures long buildup, indicating FII is rotating between instruments rather than maintaining conviction.

Monday's clean -3/3 bearish conviction with all three signals aligned has completely reversed by Tuesday's close into a confused hedging posture where derivatives contradict cash and stock positioning contradicts stock options. The week shows FII abandoning directional short conviction and rotating into defensive hedging with simultaneous stock accumulation, while DII's +1.00 Strong Bullish index futures OFR and Client and Pro alignment create a three-against-one domestic institutional wall that is now the dominant market force. Conviction has collapsed from FII-driven directional positioning to domestic institutional support holding the floor while FII fragments into hedging and stock picking.

FII's positioning has shifted from Monday's genuine bearish directional stance with -3/3 conviction to Tuesday's defensive hedging structure where index shorts protect equity longs while stock futures accumulate independently. The institutional environment traders face today is fundamentally different from yesterday — the dominant FII directional conviction that drove Monday's move has evaporated, replaced by domestic institutional support as the primary market force, reducing the probability of sustained directional moves and increasing the likelihood of range-bound consolidation as FII rotates between hedging and stock selection.

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.