🌅 FII/DII Morning Report — Wed, 22 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 (21-Jul-2026)

FII: Buy ₹16,328 Cr | Sell ₹14,678 Cr | Net +₹1,650 Cr ▲

DII: Buy ₹14,639 Cr | Sell ₹15,295 Cr | Net -₹657 Cr ▼

Combined Net: +₹993 Cr

Participant Long Short Net Direction vs FII

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FII 23,712 252,559 -228,847 Short — ★

DII 91,039 15,512 +75,527 Long Opposed

Client 214,933 66,852 +148,081 Long Opposed

Pro 41,021 35,782 +5,239 Long Opposed

📊 INSTRUMENT WISE FUTURES SIGNAL (21-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 -9,024 +5,778 -0.49 Strong Bearish Short Buildup —

NIFTY -5,118 +5,468 -0.42 Strong Bearish Short Buildup 24,187.70 -50.80 (-0.21%)

BANKNIFTY -3,721 +259 -0.64 Strong Bearish Short Buildup 57,835.35 -109.65 (-0.19%)

FINNIFTY +4 -2 +0.14 Weak Bullish Short Covering 26,531.65 -43.00 (-0.16%)

MIDCPNIFTY -174 +40 -0.55 Strong Bearish Short Buildup 14,814.30 +34.60 (+0.23%)

NIFTYNXT50 -3 -345 -1.00 Strong Bearish Long Unwinding 72,777.10 +317.05 (+0.44%)

STOCK -29,757 +30,357 -0.04 Neutral Short Buildup —

👥 PARTICIPANT OI (21-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 -2,28,847 -1.00 Strong Bearish

DII +75,527 +1.00 Strong Bullish

Client +1,48,081 -1.00 Strong Bearish

Pro +5,239 -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 +5,23,946 -0.98 Strong Bearish

DII -38,49,560 +1.00 Strong Bullish

Client +28,89,582 +0.65 Strong Bullish

Pro +4,36,032 -0.18 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 -1,70,055 -0.18 +5,08,927 -0.23 -0.20 Moderate Bearish

DII +7,685 +1.00 +33,715 -1.00 +0.00 Neutral

Client +1,46,775 +0.17 -6,09,176 -0.00 +0.16 Moderate Bullish

Pro +15,596 -0.43 +66,534 +0.11 -0.32 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 -1,78,067 -1.00 +1,64,218 -1.00 -1.00 Strong Bearish

DII -4,31,202 -1.00 +25,803 -0.99 -0.99 Strong Bearish

Client +11,76,765 +0.45 -3,82,148 +1.00 +0.72 Strong Bullish

Pro -5,67,496 -0.92 +1,92,127 -1.00 -0.96 Strong Bearish

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 bought ₹1,650 Cr in cash while aggressively building index shorts through Short Buildup with Strong Bearish FSR -0.49, creating an apparent cross-check failure that resolves into genuine directional conviction when options are examined—index options Combined OFR turned Moderate Bearish -0.20 and stock options Combined OFR collapsed to Strong Bearish -1.00, confirming the futures shorts are real conviction rather than portfolio hedging. FII's Moderate Bearish conviction score (-2/3) with S1 and S2 both bearish while S3 remained neutral reveals deliberate short buildup paired with tactical cash accumulation into weakness, not defensive hedging. DII inverted completely into extreme bearish alignment across all derivatives with index futures OFR at -1.00 and stock options Combined OFR at -0.99, eliminating any domestic institutional support floor, while Client remained opposed to FII with net long index futures of +148,081 but now faced coordinated institutional selling from both FII and DII simultaneously—the historical FII correctness when opposed by clients is being tested by the absence of any DII buffer.

Monday's Moderate Bearish conviction from index long unwinding and BankNifty short buildup accelerated decisively yesterday into aggressive index Short Buildup with Strong Bearish FSR -0.49 across the entire complex, while DII's support that had already cracked Monday completely vanished into aligned selling. Two consecutive sessions of FII building bearish conviction paired with DII's complete capitulation from any support role establishes that this is not tactical sector rotation but coordinated institutional short conviction, with stock futures OI expanding +30,357 simultaneously confirming fresh shorts being added across individual stocks alongside index shorts.

FII has established Moderate Bearish conviction across two consecutive sessions with index short buildup accelerating from Monday's unwinding into yesterday's aggressive Short Buildup, while DII has completely inverted from mechanical support into extreme bearish alignment across all derivatives instruments. Weekly expiry resolved yesterday, but the critical structural shift is that both major institutional participants are now on the same bearish side with coordinated short buildup and options positioning, meaning Client's opposing long positions that remain at +148,081 net long index futures face an institutional environment where zero domestic support exists to absorb any liquidation pressure. The market structure entering today is fundamentally different from Monday—this is coordinated institutional short conviction with DII alignment, not tactical rebalancing, establishing structural vulnerability for retail long positions without any institutional bid beneath them.

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.