Reading FII vs DII flow, participant data, and combining streams. The pre-trade checklist for institutional signal analysis.
Module 2 covered the four signal streams of smart-money tracking and how to read each correctly. If you only remember one thing: cross-verification beats single-stream conviction every time.
1. FII vs DII identity — foreign institutions vs Indian. Different drivers. Chapter →
2. Cash vs derivative — read both. Disagreement = hedging. Chapter →
3. Participant data — 4×4 matrix. Focus on FII Index Futures L/S, Pro, Client extremes. Chapter →
4. FII L/S ratio — below 30% contrarian buy, above 75% correction risk. Chapter →
5. DII flow patterns — structurally persistent. Selling is rare and meaningful. Chapter →
6. Divergence — most common pattern is FII selling + DII buying. Compare magnitudes. Chapter →
7. Hedging vs directional — filter for mechanical flow. Chapter →
8. Streak analysis — 10+ day streaks = signal. Chapter →
9. Cross-verification — 3-4 stream alignment is the edge. Chapter →
Before any institutional-flow-driven trade, run through:
1. Today's FII cash net — direction.
2. FII derivative breakdown — agrees or disagrees with cash?
3. FII L/S Ratio — extreme or mid-range?
4. DII offset — magnitude relative to FII?
5. Streak length — single day or 10+?
6. Cross-verification — does OI buildup, bulk deals, or insider activity agree?
Cross-verification. Single-signal conviction is gambling. 3-4 stream alignment is the highest-edge setup available to retail traders with public data.
Module 2 is the chaptered deep-dive (9 focused topics). /fii-dii-explained is the single-page primer version. Read the primer once, return to specific chapters for depth.
Module 6 (OI Buildup Playbook) is the natural next module — it's the per-stock equivalent of Module 2's aggregate institutional reading.