🌙 FII/DII Evening Report — Tue, 7 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 (07-Jul-2026)

FII: Buy ₹18,414 Cr | Sell ₹18,021 Cr | Net +₹393 Cr ▲

DII: Buy ₹18,897 Cr | Sell ₹19,281 Cr | Net -₹383 Cr ▼

Combined Net: +₹10 Cr

Participant Long Short Net Direction vs FII

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FII 32,710 271,548 -238,838 Short — ★

DII 80,816 11,572 +69,244 Long Opposed

Client 228,252 64,093 +164,159 Long Opposed

Pro 38,805 33,370 +5,435 Long Opposed

📊 INSTRUMENT WISE FUTURES SIGNAL (07-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 +2,441 -2,393 +0.14 Weak Bullish Short Covering —

NIFTY +2,415 -1,585 +0.18 Moderate Bullish Short Covering 24,398.70 -31.65 (-0.13%)

BANKNIFTY -38 -886 -0.01 Neutral Long Unwinding 58,200.70 -90.80 (-0.16%)

FINNIFTY +9 +3 +0.33 Strong Bullish Long Buildup 26,985.05 -8.80 (-0.03%)

MIDCPNIFTY +48 +72 +0.10 Weak Bullish Long Buildup 14,638.45 +41.90 (+0.29%)

NIFTYNXT50 +7 +3 +0.24 Moderate Bullish Long Buildup 72,248.45 -437.15 (-0.60%)

STOCK +31,648 -52,832 +0.05 Weak Bullish Short Covering —

👥 PARTICIPANT OI (07-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 -2,38,838 +1.00 Strong Bullish

DII +69,244 +1.00 Strong Bullish

Client +1,64,159 -0.06 Weak Bearish

Pro +5,435 -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 +6,03,692 +0.60 Strong Bullish

DII -39,92,124 +1.00 Strong Bullish

Client +29,15,510 -1.00 Strong Bearish

Pro +4,72,922 -0.76 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 -1,88,521 +0.00 +4,43,783 +0.03 +0.01 Neutral

DII +5,200 +1.00 +25,798 -1.00 +0.00 Neutral

Client +1,71,328 +0.06 -5,14,896 +0.00 +0.03 Neutral

Pro +11,992 -0.20 +45,315 -0.01 -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 -94,888 -0.23 +73,143 -0.32 -0.28 Moderate Bearish

DII -2,83,382 -1.00 +26,770 +0.92 -0.08 Weak Bearish

Client +6,95,747 +0.53 -2,64,761 +0.22 +0.37 Strong Bullish

Pro -3,17,477 -0.37 +1,64,848 -0.07 -0.22 Moderate Bearish

S1 Futures OFR : +1 (Bullish)

S2 Options OFR : +0 (Neutral)

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

Total : +1/3 → Weak 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 bought ₹393 Cr in cash while executing Short Covering in index futures with Weak Bullish FSR of +0.14, but the critical cross-check reveals a genuine conviction breakdown: index futures OFR remains Strong Bullish at +1.00 yet index options Combined OFR collapsed to Neutral at +0.01, signaling that FII's short covering is mechanical position unwinding rather than directional conviction. Stock futures net of +31,648 with Weak Bullish FSR of +0.05 confirms conviction has evaporated—FII is closing both index and stock shorts with minimal aggression. The conviction score of +1/3 Weak Bullish reflects S1 bullish but S2 and S3 neutral, marking a sharp deterioration from Monday's +2/3 Moderate Bullish. DII sold ₹383 Cr in cash after Monday's ₹3,791 Cr buy, reversing direction entirely, and index futures OFR turned Neutral at +1.00 while stock options Combined OFR turned Weak Bearish at -0.08—domestic capital is withdrawing conviction. Client and Pro remain opposed to FII but their Strong Bearish positioning in both index and stock options now faces FII's unwinding rather than FII's conviction, removing the historical edge that Client opposition normally provides.

Monday's morning report established FII executing conviction-driven short covering with bullish derivatives alignment and DII returning as aggressive buyer, creating a unified institutional floor. Today's close broke this pattern entirely: FII's short covering lost all directional aggression, options conviction collapsed to neutral, DII reversed into selling, and the institutional environment shifted from aligned bullish to fragmented and uncertain within a single session.

FII has spent two days closing shorts with declining intensity—Monday's Strong Bullish FSR of +0.41 deteriorated to today's Weak Bullish FSR of +0.14—and options have confirmed this is unwinding, not conviction, with index options Combined OFR falling from +0.58 to +0.01. DII's reversal from ₹3,791 Cr buy to ₹383 Cr sell after one session signals the domestic institutional floor is cracking rather than holding. Weekly expiry tomorrow will force final position resolution, but the institutional environment entering that expiry is fundamentally weaker than Monday: conviction has evaporated, both FII and DII are reducing rather than building, and the market faces expiry with no institutional support structure in place.

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.