🌅 FII/DII Morning 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 (06-Jul-2026)

FII: Buy ₹11,686 Cr | Sell ₹11,443 Cr | Net +₹243 Cr ▲

DII: Buy ₹19,728 Cr | Sell ₹15,936 Cr | Net +₹3,791 Cr ▲

Combined Net: +₹4,034 Cr

Participant Long Short Net Direction vs FII

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FII 32,686 273,965 -241,279 Short — ★

DII 77,668 11,572 +66,096 Long Opposed

Client 232,341 67,709 +164,632 Long Opposed

Pro 42,645 32,094 +10,551 Long Opposed

📊 INSTRUMENT WISE FUTURES SIGNAL (06-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 +9,488 -3,660 +0.38 Strong Bullish Short Covering —

NIFTY +7,739 -5,503 +0.41 Strong Bullish Short Covering 24,430.35 +159.50 (+0.66%)

BANKNIFTY +1,796 +1,904 +0.33 Strong Bullish Long Buildup 58,291.50 +353.00 (+0.61%)

FINNIFTY +5 +1 +0.19 Moderate Bullish Long Buildup 26,993.85 +118.80 (+0.44%)

MIDCPNIFTY -47 -57 -0.22 Moderate Bearish Long Unwinding 14,596.55 +50.65 (+0.35%)

NIFTYNXT50 -5 -5 -0.22 Moderate Bearish Long Unwinding 72,685.60 +416.65 (+0.58%)

STOCK +24,695 +17,853 +0.05 Weak Bullish Long Buildup —

👥 PARTICIPANT OI (06-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 -2,41,279 +1.00 Strong Bullish

DII +66,096 +1.00 Strong Bullish

Client +1,64,632 -1.00 Strong Bearish

Pro +10,551 -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 +5,72,044 +1.00 Strong Bullish

DII -40,09,964 +1.00 Strong Bullish

Client +29,44,401 -1.00 Strong Bearish

Pro +4,93,519 -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 -1,88,653 +1.00 +4,57,027 +0.16 +0.58 Strong Bullish

DII +3,395 +1.00 +24,236 +1.00 +1.00 Strong Bullish

Client +47,432 -0.08 -5,13,142 -0.08 -0.08 Weak Bearish

Pro +1,37,825 -0.05 +31,878 +0.15 +0.10 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 -87,223 -0.20 +62,978 +0.07 -0.13 Weak Bearish

DII -2,38,285 -1.00 +28,551 -0.02 -0.51 Strong Bearish

Client +5,95,792 +0.14 -2,49,094 -0.21 -0.07 Weak Bearish

Pro -2,70,284 +0.18 +1,57,565 +0.20 +0.19 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 executed Short Covering in Nifty futures with Strong Bullish FSR of +0.41 while buying only ₹243 Cr in cash, creating a critical divergence that resolves as genuine conviction only when cross-checked: index futures OFR and index options Combined OFR both read +1.00 bullish, confirming the short covering is conviction-driven rather than mechanical unwinding. However stock futures net of +572,044 with Weak Bullish FSR of +0.05 reveals conviction concentrated in individual stocks rather than macro index direction, and FII's index futures remain deeply short at -241,279 contracts despite the bullish derivatives alignment—this is portfolio hedging, not directional betting. The conviction score of +2/3 Moderate Bullish reflects S1 and S2 agreement while S3 cash remains neutral, with no hedging warning active because options confirm rather than contradict the futures signal. DII bought ₹3,791 Cr in cash with Strong Bullish index options Combined OFR at +1.00 but turned Strong Bearish in stock options at -0.51, creating a split where domestic capital is bullish on index protection but bearish on individual stocks. Client and Pro both positioned opposite to FII with Strong Bearish index futures OFR at -1.00—historically this divergence at inflection points favors FII's side.

This is day one of the week with FII buying ₹243 Cr and DII buying ₹3,791 Cr, establishing an opening pattern of institutional accumulation after what the evening report indicates was Friday's withdrawal by DII. The unified bullish derivatives signals across both FII futures and options represent a shift from Friday's conflicted picture into genuine conviction alignment, while DII's return to aggressive buying after Friday's selling establishes a domestic institutional floor that provides structural support. Weekly expiry tomorrow will force rapid position resolution, but the institutional environment entering this week shows both FII and DII aligned bullish on index protection despite their opposing stock options positioning.

FII entered the week with index shorts at -241,279 contracts and stock longs at +572,044, executing conviction-driven short covering with bullish derivatives alignment across both futures and options for the first time since Friday's conflicted signals. DII returned as an aggressive buyer with ₹3,791 Cr cash accumulation and Strong Bullish index options positioning after Friday's withdrawal, re-establishing the domestic institutional support floor that had cracked. The institutional environment a trader faces today is fundamentally different from Friday: both FII and DII derivatives are aligned bullish on index direction, Client opposition remains unhedged and vulnerable to this alignment, and weekly expiry tomorrow will determine whether this opening conviction sustains or reverses under position resolution pressure.

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.