FII and DII both are buying. Index is dead. Who is selling?

If both FII (Foreign Institutional Investors) and DII (Domestic Institutional Investors) are net buyers on a given day, yet the market isn’t skyrocketing as much as expected or is seeing matched volumes — the logical question is who’s selling?

Let’s decode it:

If FII & DII are Both Buying, Who's Selling?

1. Retail Investors

Typically, retail investors (individual traders/investors) are the counterparty. Many retail traders book profits when indices hit resistance zones or after a sharp rally.This is often visible in options markets too — heavy retail activity in OTM options on expiry days or after big moves.

2. High Net-Worth Individuals (HNIs) & Proprietary Traders

HNIs and proprietary desks (pro firms, large individual traders) might offload positions, especially after recent gains.They might sell midcaps/smallcaps while institutions are accumulating large caps.

3. Arbitrageurs / Algo Traders

In times of heavy institutional activity, arbitrage players might sell spot equities while buying futures or vice versa to capture spreads.Not directional investors, but they contribute to the "selling" volume side.

4. Mutual Funds Redeeming

Even though DIIs as a group might be net buyers, certain mutual funds might be facing redemptions or rebalancing out of certain stocks or sectors.

5. Corporate Promoters

Promoters might offload part of their holdings during market rallies. Or participate in block/bulk deals which get absorbed by FIIs/DIIs.

How to Track This?

• NSE Daily Market Summary (shows FII/DII cash flows)
• Bulk & Block Deals Data (visible on NSE/BSE)
• F&O participant-wise open interest (OI) data:
• Categories: FII, DII, Pro, Client (retail/HNI)
• Available daily on NSE at: NSE OI Participant Data

Example:

If FII & DII are net buyers, and "Client" category shows large net sell in F&O — retail/HNIs are booking out.