🌅 FII/DII Morning Report — Thu, 23 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 (22-Jul-2026)

FII: Buy ₹12,890 Cr | Sell ₹13,709 Cr | Net -₹819 Cr ▼

DII: Buy ₹13,666 Cr | Sell ₹14,084 Cr | Net -₹418 Cr ▼

Combined Net: -₹1,237 Cr

Participant Long Short Net Direction vs FII

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FII 24,436 276,140 -251,704 Short — ★

DII 89,529 15,707 +73,822 Long Opposed

Client 227,949 63,366 +164,583 Long Opposed

Pro 44,801 31,502 +13,299 Long Opposed

📊 INSTRUMENT WISE FUTURES SIGNAL (22-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 -22,857 +24,305 -0.53 Strong Bearish Short Buildup —

NIFTY -21,140 +22,956 -0.68 Strong Bearish Short Buildup 23,996.25 -191.45 (-0.79%)

BANKNIFTY -1,535 +1,183 -0.14 Weak Bearish Short Buildup 57,126.80 -708.55 (-1.23%)

FINNIFTY -27 +23 -0.77 Strong Bearish Short Buildup 26,188.85 -342.80 (-1.29%)

MIDCPNIFTY -156 +142 -0.18 Moderate Bearish Short Buildup 14,626.35 -187.95 (-1.27%)

NIFTYNXT50 +1 +359 +0.11 Weak Bullish Long Buildup 72,296.65 -480.45 (-0.66%)

STOCK -13,270 +28,176 -0.01 Neutral Short Buildup —

👥 PARTICIPANT OI (22-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 -2,51,704 -0.94 Strong Bearish

DII +73,822 -1.00 Strong Bearish

Client +1,64,583 +1.00 Strong Bullish

Pro +13,299 +1.00 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 +5,10,676 -0.47 Strong Bearish

DII -38,20,778 +1.00 Strong Bullish

Client +28,91,344 +0.07 Weak Bullish

Pro +4,18,758 -0.19 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 -2,48,973 -0.25 +5,44,408 -0.15 -0.20 Moderate Bearish

DII +7,695 +0.05 +34,102 -1.00 -0.95 Strong Bearish

Client +1,72,273 +0.02 -6,91,782 +0.13 +0.07 Weak Bullish

Pro +69,005 +0.08 +1,13,272 -0.25 -0.17 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 -1,88,237 -1.00 +1,69,545 -0.52 -0.76 Strong Bearish

DII -4,32,078 -0.35 +26,070 -0.27 -0.31 Strong Bearish

Client +12,00,637 +0.52 -4,05,137 +0.84 +0.68 Strong Bullish

Pro -5,80,322 -0.32 +2,09,522 -0.23 -0.28 Moderate 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 sold ₹819 Cr in cash while building index shorts through Short Buildup with Strong Bearish FSR -0.53, with index futures OFR at -0.94 and index options Combined OFR at -0.20 confirming genuine directional conviction rather than hedging—conviction score landed at Moderate Bearish -2/3 with S1 and S2 both bearish while S3 remained neutral. Stock futures net selling of -13,270 contracts with OI expanding +28,176 reveals FII added fresh shorts across individual stocks simultaneously with index shorts, and stock options Combined OFR turned Strong Bearish at -0.76, confirming coordinated bearish positioning across the entire equity complex. DII mirrored FII's selling with ₹418 Cr net outflow and index futures OFR at -1.00 (Strong Bearish), maintaining complete alignment with FII's short conviction while stock options Combined OFR turned Strong Bearish at -0.31, eliminating any domestic institutional support. Client and Pro remain opposed to FII with combined index futures net long of +177,882 contracts, but face a market where both FII and DII are aggressively short with zero institutional bid beneath retail long positions.

FII has now established three consecutive sessions of Moderate Bearish conviction—Monday's unwinding evolved into Tuesday's aggressive short buildup at weekly expiry, then sustained into Wednesday's identical -2/3 conviction score with accelerating index Short Buildup at Strong Bearish FSR -0.53. Stock futures OI has expanded +28,176 contracts today on top of yesterday's +30,357, indicating fresh shorts are being systematically added across individual stocks rather than index hedging, confirming this is sustained institutional short positioning with no reversal signals. DII's complete alignment across all derivatives instruments—index futures OFR at -1.00 and stock options Combined OFR at -0.31—removes any domestic institutional floor that might have provided support, establishing a structural environment where both major institutional participants are on the same bearish side.

The institutional environment entering today is fundamentally shifted from the week's start—FII's three-session Moderate Bearish conviction with coordinated DII alignment has established a structural short bias with expanding OI and no covering signals, while Client's opposing long positions of +164,583 net index futures face liquidation pressure into monthly expiry (5 days away) with zero domestic institutional support to absorb selling. This is no longer tactical sector rotation but sustained institutional short conviction meeting near-expiry mechanics, creating asymmetric risk for retail longs positioned opposite to both FII and DII simultaneously.

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.