🌅 FII/DII Morning Report — Fri, 24 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 (23-Jul-2026)

FII: Buy ₹11,472 Cr | Sell ₹14,471 Cr | Net -₹2,999 Cr ▼

DII: Buy ₹16,575 Cr | Sell ₹13,628 Cr | Net +₹2,947 Cr ▲

Combined Net: -₹52 Cr

Participant Long Short Net Direction vs FII

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FII 24,274 287,356 -263,082 Short — ★

DII 83,066 15,760 +67,306 Long Opposed

Client 232,911 65,424 +167,487 Long Opposed

Pro 60,363 32,074 +28,289 Long Opposed

📊 INSTRUMENT WISE FUTURES SIGNAL (23-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 -11,378 +11,054 -0.10 Weak Bearish Short Buildup —

NIFTY -8,228 +8,256 -0.10 Weak Bearish Short Buildup 23,869.60 -126.65 (-0.53%)

BANKNIFTY -2,779 +2,629 -0.16 Moderate Bearish Short Buildup 56,592.00 -534.80 (-0.94%)

FINNIFTY -90 +96 -0.35 Strong Bearish Short Buildup 25,992.05 -196.80 (-0.75%)

MIDCPNIFTY -277 +71 -0.02 Neutral Short Buildup 14,428.35 -198.00 (-1.35%)

NIFTYNXT50 -4 +2 -0.01 Neutral Short Buildup 71,840.45 -456.20 (-0.63%)

STOCK +36,473 -73,901 +0.01 Neutral Short Covering —

👥 PARTICIPANT OI (23-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 -2,63,082 -1.00 Strong Bearish

DII +67,306 -1.00 Strong Bearish

Client +1,67,487 +0.41 Strong Bullish

Pro +28,289 +0.93 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 +5,47,149 +0.49 Strong Bullish

DII -38,24,126 -0.38 Strong Bearish

Client +28,79,325 -0.27 Moderate Bearish

Pro +3,97,652 -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 -3,14,487 -0.52 +5,46,528 -0.04 -0.28 Moderate Bearish

DII +7,590 -1.00 +35,169 -0.99 -1.00 Strong Bearish

Client +1,67,052 -0.01 -7,69,347 +0.22 +0.21 Moderate Bullish

Pro +1,39,845 +0.31 +1,87,652 -1.00 -0.69 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 -1,81,668 +0.27 +1,81,704 -1.00 -0.73 Strong Bearish

DII -4,36,199 -1.00 +25,538 +0.26 -0.74 Strong Bearish

Client +11,57,349 -0.50 -4,02,545 -0.33 -0.42 Strong Bearish

Pro -5,39,482 +0.79 +1,95,303 +0.35 +0.57 Strong 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 ₹2,999 Cr in cash—the largest single-day outflow of the week—while index futures OFR collapsed to -1.00 (Strong Bearish) and index options Combined OFR turned Moderate Bearish at -0.28, confirming genuine directional conviction rather than hedging. Stock futures showed Short Covering with OI contracting -73,901 while stock options Combined OFR turned Strong Bearish at -0.73, creating a structural contradiction where FII is covering stock shorts while maintaining index shorts, signaling a shift from coordinated short conviction toward selective position management. DII reversed sharply with +₹2,947 Cr cash inflow and index futures OFR at -1.00 (Strong Bearish), but stock futures OFR turned Strong Bearish at -0.38, meaning domestic capital is rotating away from individual stocks into index protection, removing the institutional alignment that existed through Wednesday.

The week established a three-session pattern of Moderate Bearish conviction from Monday through Wednesday with FII and DII aligned on index shorts and expanding stock shorts, then broke decisively on Thursday when FII's largest cash outflow combined with stock short covering and DII's reversal into massive cash buying signaled the institutional environment shifted from sustained short conviction toward position unwinding and rotation. The conviction structure has fractured—FII's Moderate Bearish score of -2/3 is sustained by index shorts and options positioning, but stock short covering and the largest cash selling of the week suggest FII is reducing gross exposure rather than adding conviction, with the near-monthly expiry (5 days away) now driving mechanical rebalancing rather than directional conviction.

FII enters today with Moderate Bearish conviction sustained by index shorts at -263,082 net OI and options positioning, but the stock short covering of +36,473 contracts and ₹2,999 Cr cash selling suggest conviction is fading rather than building as expiry approaches. DII's sharp reversal into +₹2,947 Cr buying removes the institutional alignment that existed through Wednesday, creating a bifurcated market where index shorts remain in place but individual stock positioning is rotating, with Client holding +167,487 net index longs opposed to FII's shorts but now without domestic institutional support. The critical question entering today is whether FII's index shorts are genuine conviction or defensive hedging ahead of monthly expiry—if FII covers index shorts alongside the stock covering already underway, the entire bearish structure collapses into a relief rally.

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.