🌅 FII/DII Morning Report — Tue, 21 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 (20-Jul-2026)

FII: Buy ₹13,313 Cr | Sell ₹14,434 Cr | Net -₹1,121 Cr ▼

DII: Buy ₹16,188 Cr | Sell ₹14,876 Cr | Net +₹1,312 Cr ▲

Combined Net: +₹191 Cr

Participant Long Short Net Direction vs FII

--------------------------------------------------------------

FII 25,335 245,158 -219,823 Short — ★

DII 74,318 15,512 +58,806 Long Opposed

Client 215,325 65,941 +149,384 Long Opposed

Pro 46,089 34,456 +11,633 Long Opposed

📊 INSTRUMENT WISE FUTURES SIGNAL (20-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

----------------------------------------------------------------------------------------------------------------------

INDEX -3,295 -7,143 -0.10 Weak Bearish Long Unwinding —

NIFTY +3,690 -7,562 +0.20 Moderate Bullish Short Covering 24,238.50 -95.80 (-0.39%)

BANKNIFTY -6,914 +332 -0.49 Strong Bearish Short Buildup 57,945.00 -576.40 (-0.98%)

FINNIFTY +26 -24 +0.28 Moderate Bullish Short Covering 26,574.65 -328.70 (-1.22%)

MIDCPNIFTY -97 +111 -0.25 Moderate Bearish Short Buildup 14,779.70 +64.30 (+0.44%)

NIFTYNXT50 0 0 +0.00 Neutral No Change 72,460.05 +631.65 (+0.88%)

STOCK +158 -31,442 +0.00 Neutral Short Covering —

👥 PARTICIPANT OI (20-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 -2,19,823 -0.46 Strong Bearish

DII +58,806 -0.66 Strong Bearish

Client +1,49,384 +0.31 Strong Bullish

Pro +11,633 +0.02 Neutral

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 +5,53,703 +0.01 Neutral

DII -38,57,802 -1.00 Strong Bearish

Client +28,52,569 +1.00 Strong Bullish

Pro +4,51,530 -0.24 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 -1,49,857 -1.00 +4,10,533 -0.41 -0.70 Strong Bearish

DII +7,600 +0.56 +33,667 -0.98 -0.41 Strong Bearish

Client -1,04,565 +0.13 -6,17,095 +0.66 +0.40 Strong Bullish

Pro +2,46,822 -0.22 +1,72,895 -1.00 -0.61 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 -1,63,096 -0.24 +1,53,536 -0.39 -0.32 Strong Bearish

DII -4,25,058 -1.00 +22,635 +0.33 -0.67 Strong Bearish

Client +11,30,335 +0.31 -3,31,900 +0.02 +0.17 Moderate Bullish

Pro -5,42,181 -0.15 +1,55,729 +0.31 +0.16 Moderate Bullish

S1 Futures OFR : -1 (Bearish)

S2 Options OFR : -1 (Bearish)

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

Total : -2/3 → Moderate Bearish

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 ₹1,121 Cr in cash while unwinding index longs through Long Unwinding with Weak Bearish FSR -0.10, but this masks a tactical rotation rather than directional reversal—Nifty futures showed Strong Bullish FSR +0.20 Short Covering while stock futures remained Neutral at +553,703 net longs, revealing FII is mechanically reducing index exposure while maintaining equity conviction. Index options Combined OFR turned Strong Bearish -0.70 confirming the derivatives shift is real, landing conviction at -2/3 Moderate Bearish rather than -3, signaling positioning adjustment within structure not directional capitulation. BankNifty's Strong Bearish FSR -0.49 with Short Buildup shows FII actively rotating bearishness into banking sector while covering broad index shorts. DII's index futures OFR collapsed to Strong Bearish -0.66 and stock futures OFR hit extreme -1.00, meaning domestic institutions simultaneously unwound both index and stock with zero conviction—the domestic floor cracked entirely and DII shifted from support to aligned selling. Client and Pro remain opposed to FII in index futures with net longs of +149,384 and +11,633 respectively, but Client's index options Combined OFR is Strong Bullish +0.40 while stock options Combined OFR is Moderate Bullish +0.17, revealing retail conviction building in options while institutions unwind—classic late-cycle structure where institutional money exits into retail strength.

Monday established the week's opening move as tactical rebalancing with sector rotation, not distribution. FII's Moderate Bearish conviction emerged from index long unwinding paired with BankNifty short buildup, while DII's complete capitulation from mechanical support to aligned selling removed any institutional buffer. The week's single trading day shows FII rotating bearishness into specific sectors rather than distributing outright, with stock futures remaining net long but conviction pausing while derivatives tactics dominate. Weekly expiry today will force rapid unwinding across all participants and the absence of domestic institutional support means any Client position liquidation will lack a buyer, establishing an environment where tactical bearishness in derivatives masks underlying equity accumulation rather than genuine distribution.

FII entered the week carrying Moderate Bullish conviction with index shorts being covered and stock longs accumulated, while DII provided mechanical domestic support. Monday's close inverted that pattern decisively—FII shifted to Moderate Bearish conviction with index long unwinding and BankNifty short buildup, while DII's support collapsed entirely into Strong Bearish positioning across both index and stock futures. Today's weekly expiry will resolve positions accumulated across the week's single session, with FII's tactical rotation into banking sector shorts and Client's building options conviction creating a structure where institutional unwinding meets retail strength into expiry. The institutional environment a trader faces today is fundamentally different from yesterday—DII support has vanished, FII is actively rotating sector bearishness rather than distributing, and Client conviction is building in options while institutions reduce cash exposure, establishing a market dependent on expiry mechanics rather than directional institutional conviction.

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.