🌅 FII/DII Morning Report — Wed, 1 Jul, 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 (30-Jun-2026)

FII: Buy ₹23,274 Cr | Sell ₹25,830 Cr | Net -₹2,557 Cr ▼

DII: Buy ₹23,433 Cr | Sell ₹16,590 Cr | Net +₹6,842 Cr ▲

Combined Net: +₹4,286 Cr

Participant Long Short Net Direction vs FII

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

FII 33,502 289,912 -256,410 Short — ★

DII 72,667 11,786 +60,881 Long Opposed

Client 247,940 61,833 +186,107 Long Opposed

Pro 39,762 30,340 +9,422 Long Opposed

📊 INSTRUMENT WISE FUTURES SIGNAL (30-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 -42,432 -32,015 -0.29 Moderate Bearish Long Unwinding —

NIFTY -33,129 -18,196 -0.28 Moderate Bearish Long Unwinding 23,865.75 -80.50 (-0.34%)

BANKNIFTY -9,098 -11,099 -0.35 Strong Bearish Long Unwinding 57,542.90 -184.45 (-0.32%)

FINNIFTY -18 -225 -0.06 Weak Bearish Long Unwinding 26,554.55 -43.80 (-0.16%)

MIDCPNIFTY -173 -2,487 -0.09 Weak Bearish Long Unwinding 14,426.35 +58.95 (+0.41%)

NIFTYNXT50 -14 -8 -0.03 Neutral Long Unwinding 71,629.45 +119.15 (+0.17%)

STOCK -27,973 -418,133 -0.02 Neutral Long Unwinding —

👥 PARTICIPANT OI (30-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 -2,56,410 -0.69 Strong Bearish

DII +60,881 -1.00 Strong Bearish

Client +1,86,107 +1.00 Strong Bullish

Pro +9,422 +0.38 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 +5,10,094 -0.40 Strong Bearish

DII -40,32,481 -0.05 Neutral

Client +29,74,105 +0.09 Weak Bullish

Pro +5,48,282 +0.43 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 -2,33,098 +0.01 +5,32,536 +0.09 +0.05 Weak Bullish

DII +3,350 -0.96 +23,026 +0.99 +0.02 Neutral

Client +1,92,300 -0.01 -7,16,869 -0.01 -0.01 Neutral

Pro +37,448 +0.01 +1,61,308 -0.05 -0.04 Neutral

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 -49,325 +0.25 +39,697 +0.20 +0.22 Moderate Bullish

DII -70,349 +1.00 +29,888 -0.18 +0.82 Strong Bullish

Client +4,62,932 -0.28 -2,40,220 -0.12 -0.20 Moderate Bearish

Pro -3,43,258 +0.03 +1,70,635 -0.00 +0.03 Neutral

S1 Futures OFR : -1 (Bearish)

S2 Options OFR : +0 (Neutral)

S3 Cash Market : 0 (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 sold ₹2,557 Cr in cash on the second consecutive day while unwinding long positions across all index futures with Moderate to Strong Bearish FSR, but index options Combined OFR turned Weak Bullish at +0.05 while stock options showed Moderate Bullish at +0.22—this conflict between bearish futures unwinding and bullish options positioning is a hedging signature, not directional conviction. FII is closing equity exposure defensively through cash selling and stock futures liquidation while simultaneously buying calls and selling puts to protect remaining positions, confirmed by conviction score of -1/3 (Weak Bearish) with no hedging warning active. DII absorbed ₹6,842 Cr with their second consecutive day of heavy buying, but their index futures OFR collapsed to Strong Bearish at -1.00 while stock futures turned Neutral, revealing they are hedging accumulated longs with index shorts rather than holding unhedged—institutional support has shifted from genuine conviction to defensive protection.

FII's two-day pattern shows consistent selling totaling ₹3,907 Cr with index shorts building from -234,451 to -256,410 contracts, but the activity shifted from Monday's genuine Moderate Bearish directional conviction (S1 and S2 both bearish) to Tuesday's defensive unwinding with options hedging. DII's ₹9,644 Cr two-day accumulation is being progressively hedged rather than held outright, with both index and stock options Combined OFR turning bearish by day two, signaling domestic institutions sense FII's liquidation and are protecting rather than adding conviction. Monthly expiry today forced rapid position resolution across both FII and DII, with conviction fading as positions unwind rather than building as they accumulate.

FII enters the new week carrying -256,410 index futures net shorts and +510,094 stock futures net longs accumulated over two days of defensive liquidation, not directional shorting—the positioning is equity exposure reduction ahead of expiry rather than a bearish market bet. DII's heavy cash accumulation of ₹9,644 Cr is being hedged with index shorts and puts, meaning domestic institutions are buying but protecting, not confident in further upside. Client and Pro remain long in index futures opposed to FII, but with both institutional forces now defensive and monthly expiry resolved, the market structure has shifted from contested positioning to uncertain conviction—the week's established pattern of FII hedging long stocks while DII provided unhedged support has broken, replaced by mutual defensive positioning that suggests neither force has conviction going forward.

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.