🌅 FII/DII Morning Report — Tue, 14 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 (13-Jul-2026)

FII: Buy ₹10,386 Cr | Sell ₹13,449 Cr | Net -₹3,062 Cr ▼

DII: Buy ₹17,393 Cr | Sell ₹15,222 Cr | Net +₹2,172 Cr ▲

Combined Net: -₹891 Cr

Participant Long Short Net Direction vs FII

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FII 32,009 287,122 -255,113 Short — ★

DII 78,213 10,880 +67,333 Long Opposed

Client 228,874 62,043 +166,831 Long Opposed

Pro 50,458 29,509 +20,949 Long Opposed

📊 INSTRUMENT WISE FUTURES SIGNAL (13-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 -402 -4,434 -0.02 Neutral Long Unwinding —

NIFTY +555 -3,187 +0.04 Neutral Short Covering 24,211.00 +4.10 (+0.02%)

BANKNIFTY -1,058 -1,436 -0.13 Weak Bearish Long Unwinding 58,131.45 +85.55 (+0.15%)

FINNIFTY +4 0 +0.14 Weak Bullish No Change 26,836.15 +5.10 (+0.02%)

MIDCPNIFTY +98 +192 +0.21 Moderate Bullish Long Buildup 14,839.65 +18.75 (+0.13%)

NIFTYNXT50 -1 -3 -0.04 Neutral Long Unwinding 72,111.40 -280.40 (-0.39%)

STOCK -10,603 -5,121 -0.02 Neutral Long Unwinding —

👥 PARTICIPANT OI (13-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 -2,55,113 -0.09 Weak Bearish

DII +67,333 -1.00 Strong Bearish

Client +1,66,831 -1.00 Strong Bearish

Pro +20,949 +0.70 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 +6,27,825 -1.00 Strong Bearish

DII -39,38,989 +0.00 Neutral

Client +28,59,975 +0.37 Strong Bullish

Pro +4,51,189 -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 -1,76,174 +0.62 +4,54,159 +0.43 +0.52 Strong Bullish

DII +5,121 +0.91 +32,508 -1.00 -0.09 Weak Bearish

Client +19,021 -0.04 -6,06,418 -0.02 -0.03 Neutral

Pro +1,52,033 -0.29 +1,19,750 +0.01 -0.28 Moderate 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 -1,30,975 +0.06 +1,24,058 +0.02 +0.04 Neutral

DII -3,55,357 -0.89 +24,855 -1.00 -0.95 Strong Bearish

Client +8,65,812 +0.34 -3,01,206 +0.00 +0.17 Moderate Bullish

Pro -3,79,480 -0.24 +1,52,293 -0.01 -0.13 Weak Bearish

S1 Futures OFR : -1 (Bearish)

S2 Options OFR : +1 (Bullish)

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

Total : 0/3 → Neutral

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 ₹3,062 Cr in cash with index futures showing Long Unwinding (net -402 contracts, OI down -4,434) at Neutral FSR -0.02, but index options Combined OFR flipped to Strong Bullish +0.52, creating a critical contradiction that reveals hedging rather than directional bearishness—FII is tightening portfolio protection while maintaining bullish options conviction. Stock futures unwinding of -10,603 contracts with Neutral FSR confirms the cash selling is rebalancing, not conviction selling. DII collapsed into Strong Bearish across both index options Combined OFR -0.09 and stock options Combined OFR -0.95, abandoning any support posture and aligning with FII's defensive positioning for the first time this week. Clients remain net long +166,831 in index futures, now opposed to both major institutional forces simultaneously—a structural vulnerability heading into weekly expiry.

Monday's single session established the week's dominant pattern: coordinated institutional defensiveness with no conviction accumulation. FII's index unwinding combined with DII's sharp reversal into bearish options signals both foreign and domestic institutions are actively reducing exposure rather than rotating or hedging passively. The absence of any Long Buildup or Short Covering with strong conviction across either participant means conviction is not building—it is deteriorating. Client positioning of +166,831 net longs standing opposed to both FII and DII creates acute expiry vulnerability tomorrow when positions must resolve.

The institutional environment entering today is one of coordinated defensive positioning with no domestic support floor and no conviction accumulation—FII is hedging their equity portfolio while DII has cracked entirely into bearish options positioning. Weekly expiry today will force rapid resolution of the +166,831 net long client positions that stand opposed to both major institutional forces, creating acute vulnerability to position unwinding. The market structure has shifted from Friday's hedged-but-stable to Monday's actively deteriorating with both institutional forces aligned bearish and retail unhedged long.

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.