🌅 FII/DII Morning Report — Mon, 20 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 (17-Jul-2026)

FII: Buy ₹14,394 Cr | Sell ₹14,770 Cr | Net -₹376 Cr ▼

DII: Buy ₹17,180 Cr | Sell ₹16,162 Cr | Net +₹1,018 Cr ▲

Combined Net: +₹641 Cr

Participant Long Short Net Direction vs FII

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FII 30,554 247,082 -216,528 Short — ★

DII 74,763 15,604 +59,159 Long Opposed

Client 219,094 73,128 +145,966 Long Opposed

Pro 40,283 28,880 +11,403 Long Opposed

📊 INSTRUMENT WISE FUTURES SIGNAL (17-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 +33,358 -23,088 +0.56 Strong Bullish Short Covering —

NIFTY +25,439 -23,227 +0.58 Strong Bullish Short Covering 24,334.30 +261.55 (+1.09%)

BANKNIFTY +8,245 +221 +0.59 Strong Bullish Long Buildup 58,521.40 +939.15 (+1.63%)

FINNIFTY +2 +2 +0.05 Neutral Long Buildup 26,903.35 +346.65 (+1.31%)

MIDCPNIFTY -331 -81 -0.29 Moderate Bearish Long Unwinding 14,715.40 -59.00 (-0.40%)

NIFTYNXT50 +3 -3 +0.43 Strong Bullish Short Covering 71,828.40 -68.35 (-0.10%)

STOCK +19,378 -28,694 +0.03 Neutral Short Covering —

👥 PARTICIPANT OI (17-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 -2,16,528 +1.00 Strong Bullish

DII +59,159 -0.94 Strong Bearish

Client +1,45,966 -1.00 Strong Bearish

Pro +11,403 -0.81 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 +5,53,545 +0.68 Strong Bullish

DII -38,51,011 +1.00 Strong Bullish

Client +28,33,725 -1.00 Strong Bearish

Pro +4,63,741 -0.13 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 -69,411 +1.00 +3,97,859 +0.25 +0.63 Strong Bullish

DII +7,564 -1.00 +32,210 -0.25 -0.62 Strong Bearish

Client -2,11,720 -0.88 -4,70,732 -0.09 -0.48 Strong Bearish

Pro +2,73,567 +1.00 +40,663 +0.09 +0.55 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 -1,51,572 +0.20 +1,35,715 +0.13 +0.17 Moderate Bullish

DII -4,13,122 -0.97 +23,345 -1.00 -0.99 Strong Bearish

Client +10,89,511 -0.11 -3,30,596 -0.08 -0.10 Weak Bearish

Pro -5,24,817 +0.02 +1,71,536 +0.02 +0.02 Neutral

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 sold ₹376 Cr in cash on 17-Jul while simultaneously covering index shorts aggressively through Short Covering with Strong Bullish FSR +0.58 on Nifty futures, creating the classic hedging signature where cash and futures point opposite directions. Index options Combined OFR confirmed this is genuine bullish conviction, not defensive hedging—FII's index options shifted to Strong Bullish +0.63 with both calls and puts aligned bullish, meaning the short covering reflects actual position reduction rather than portfolio protection. Stock futures net long of +19,378 contracts with Neutral FSR +0.03 reveals the real conviction sits in individual stocks where FII maintains +553,545 accumulated longs, not in index direction. DII absorbed the cash selling with +₹1,018 Cr buying but their index futures OFR collapsed to Strong Bearish -0.94 while their index options Combined OFR turned Strong Bearish -0.62, signaling domestic institutions are mechanically buying without directional conviction—the domestic floor is present but fragile. Client and Pro both opposed FII with net long index positions of +145,966 and +11,403 respectively, establishing the historical inflection structure where FII shorts index while retail and prop hold longs.

Yesterday's session extended the week's established pattern of FII cash selling paired with derivatives conviction building—the week total now stands at -₹9,120 Cr FII selling absorbed entirely by DII's +₹9,809 Cr buying, but Friday's derivatives reversal (index options Combined OFR turning Neutral from Strong Bearish Wednesday) signals the week's mechanical rebalancing is completing and conviction is stabilizing. FII's index short covering accelerated into session-end with Strong Bullish FSR +0.58 on Nifty, marking the third consecutive day of Short Covering activity, confirming this is deliberate position reduction rather than noise. The conviction score of +2/3 Moderate Bullish (both futures and options bullish, cash neutral) held steady through the week, indicating FII's derivatives positioning is genuine and the cash selling represents portfolio adjustment, not distribution.

FII enters today carrying the week's established structure: index shorts being systematically covered through Short Covering with building conviction, stock longs accumulated at +553,545 contracts with Strong Bullish OFR, and cash selling that has now totaled -₹9,120 Cr across five sessions without triggering a hedging warning—this is defensive rebalancing with genuine conviction in individual stocks, not directional bearishness. DII's domestic institutional support has stabilized after Wednesday's crack, with Friday's index options Combined OFR recovering to Neutral and cash buying continuing, but the lack of conviction backing (index options OFR swinging from +0.58 to -0.96 to 0.00 across the week) means the floor is mechanical, not structural. Weekly expiry tomorrow will force rapid position unwinding, and with FII concentrated in stock conviction while covering index shorts, DII mechanically supporting without conviction, and Client opposition unhedged at +145,966 net longs, the institutional environment is one of defensive positioning building conviction rather than directional conviction—FII is protecting equity while accumulating on weakness, not distributing.

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.