🌙 FII/DII Evening Report — Thu, 2 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 (02-Jul-2026)

FII: Buy ₹14,018 Cr | Sell ₹14,330 Cr | Net -₹312 Cr ▼

DII: Buy ₹17,392 Cr | Sell ₹15,607 Cr | Net +₹1,784 Cr ▲

Combined Net: +₹1,473 Cr

Participant Long Short Net Direction vs FII

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FII 29,443 286,343 -256,900 Short — ★

DII 76,185 11,589 +64,596 Long Opposed

Client 243,441 65,455 +177,986 Long Opposed

Pro 40,808 26,490 +14,318 Long Opposed

📊 INSTRUMENT WISE FUTURES SIGNAL (02-Jul-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 +3,159 -9,225 +0.13 Weak Bullish Short Covering —

NIFTY +4,661 -9,239 +0.23 Moderate Bullish Short Covering 24,175.70 +169.85 (+0.71%)

BANKNIFTY -1,260 -514 -0.36 Strong Bearish Long Unwinding 58,031.65 -1.40 (-0.00%)

FINNIFTY +8 +6 +0.17 Moderate Bullish Long Buildup 26,862.40 +64.65 (+0.24%)

MIDCPNIFTY -244 +516 -0.22 Moderate Bearish Short Buildup 14,573.30 +37.20 (+0.26%)

NIFTYNXT50 -6 +6 -0.43 Strong Bearish Short Buildup 72,418.55 +317.90 (+0.44%)

STOCK +37,720 +28,334 +0.06 Weak Bullish Long Buildup —

👥 PARTICIPANT OI (02-Jul-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 -2,56,900 +0.34 Strong Bullish

DII +64,596 +1.00 Strong Bullish

Client +1,77,986 -1.00 Strong Bearish

Pro +14,318 +1.00 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 +5,34,569 +1.00 Strong Bullish

DII -40,39,474 -0.25 Moderate Bearish

Client +29,78,967 -1.00 Strong Bearish

Pro +5,25,938 -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 -2,24,900 +1.00 +4,42,042 +1.00 +1.00 Strong Bullish

DII +3,420 -1.00 +24,656 +1.00 +0.00 Neutral

Client +59,093 -0.27 -5,77,233 -0.12 -0.19 Moderate Bearish

Pro +1,62,387 +1.00 +1,10,535 +0.30 +0.65 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 -63,962 +0.03 +53,654 -0.19 -0.17 Moderate Bearish

DII -1,60,737 -1.00 +29,984 +0.13 -0.87 Strong Bearish

Client +5,19,311 -0.28 -2,45,491 -0.05 -0.17 Moderate Bearish

Pro -2,94,612 +0.45 +1,61,853 +0.14 +0.30 Moderate Bullish

S1 Futures OFR : +1 (Bullish)

S2 Options OFR : +1 (Bullish)

S3 Cash Market : 0 (Threshold: ₹3,800 Cr)

Total : +2/3 → Moderate Bullish

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 reversed course dramatically—shifting from three consecutive days of selling to net buying of ₹312 Cr in cash, marking the first positive session of the week. Index futures activity flipped from Short Buildup to Short Covering with +3,159 net contracts and Weak Bullish FSR of +0.13, but the critical signal is that stock futures exploded into Long Buildup with +37,720 net contracts and Weak Bullish FSR of +0.06, indicating FII's conviction is now concentrated in individual stock positioning rather than index hedging. Index futures OFR turned Strong Bullish at +0.34 while index options Combined OFR also turned Strong Bullish at +1.00—both derivatives signals aligned bullish—but this alignment combined with near-flat cash net creates the classic hedging signature: FII is closing their index shorts while simultaneously building stock longs, using index derivatives to unwind bearish portfolio protection rather than expressing genuine directional conviction. The conviction score of +2 Moderate Bullish reflects this mixed picture—two derivative signals bullish, cash signal neutral. DII maintained their long accumulation with +₹1,784 Cr cash and Strong Bullish index futures OFR at +1.00, but their stock options Combined OFR remained Moderate Bearish at -0.25, confirming they continue buying but hedging stock-specific risk. Client and Pro both turned Strong Bearish in stock options Combined OFR at -1.00, signaling all participants except FII are now protecting individual stock exposure.

Morning report established FII as directionally short with -260,059 index net shorts and Weak Bearish conviction score of -1, with DII buying defensively while hedging. Today's close shows FII unwinding their index shorts while pivoting to stock long buildup—this is not a reversal of conviction but a repositioning within the same bearish-to-bullish transition, using index derivatives to hedge out their prior short exposure while committing new capital to individual stocks. The shift from index shorts to stock longs is the most important development: FII is no longer betting against the index but betting on stock selection, a fundamentally different market structure than yesterday's contested index positioning.

FII enters tomorrow carrying +534,569 stock futures net longs built in a single session with Strong Bullish OFR, their largest conviction signal of the week, while their index shorts are being systematically closed through Short Covering rather than panic unwinding. DII's ₹14,587 Cr four-day accumulation remains intact but their stock options hedging intensifying signals they sense FII's stock conviction and are protecting rather than confident in sustained support. The institutional environment has shifted from Wednesday's clear FII bearish conviction to today's FII stock bullish conviction with index shorts being unwound—this is a rotation from macro bearish to stock bullish, not a reversal, and the market structure now depends entirely on whether FII's stock long conviction sustains or whether this is merely tactical unwinding ahead of weekly expiry on Tuesday.

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.