Hi
Please clarify why when fii buys market goes up but same not true for dii. Is that because some technical or dii means majorly mutual fund which is actually retail buchered by instititution (fii).
Because FIIs can buy more as their currencies are valuable than our rupee. Be it USD, Euro, CAD, AUD or other such currencies. So when they buy market moves. And when they sell market falls.
Although there has been increasing retail participation via MF route and direct equity, so I think it is acting as some cushion.
Not quite true. The total buy and sell qty remains the same for the timeframe. Somebody has to sell for a buy position, if there is no buyer then the market maker will have to take up that role.
Momentum is what sets the bullish or bearish tone.
The quantity remains the same, but the value increases or decreases. If you are an investor for sometime, I am sure you know that a lot of times because of various reasons, valuations of some stocks rise to great highs, one reason is because of FIIs. They can take something up, up and up.
One supplementing reason is that, corporate governance is an issue with us, so a lot of stocks don’t get the attention and traction, only a handful do. So the demand goes up, up and up, and the price/market does the same.
In India, only a small percentage of people are exposed to capital markets directly or indirectly, and rightly so, because we have plethora of investing venues.
what I know and from my experience.
recession fears, interest rates, inflation or finding some other market attractive and want to invest more there or finally profit booking(more often used term)
due to one of the reasons mentioned above, Lets say I am an FII and I have shares worth 500 crores in Index heavy weights such as Reliance, HDFC bank ICICI bank Infy etc, I’ll sell the shares and I’ll be in control of price movement.
The same happens vice versa.
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Yes.
People with such a huge capital hunt for good returns, so they look at emerging markets, and if they find any other market better than ours, they will leave. But I think a stable government plays a role here, because a portion of the economy in a democratic country is directly connected to the policies and regulations, so FIIs will be interested in our market, need to see if this proves to be wrong in the future.
Its not true at all that fii buy at market order goes up at all. In all trading session fii are positional net buyer but you can see swing in market that is due to mutual interest. Microeconomics says the amount of goods and services that are available for people to buy compared to the amount of goods and services that people want to buy If less of a product than the public wants is produced, the law of supply and demand says that more can be charged for the product.
As stated is quantity decrease price rise up and vice versa. You can compare it will dailylife example that current price of onion is @30per kg but if there will be onion shortage that price will drastically increase. Same in securities market that that there is buyer and seller in different price of same securities. As market order the trade is on higher available price in buy order and vice versa.
Sometimes i have seen that both FIIs and DIIs will be net buyers but market has fallen that day. Why is it so? Who is the seller in that scenario? 
This rarely happens and it mostly can be that they sell at highs and buy gradually at lows.
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Got this data from Superstar Large Shareholder Portfolios
i was assuming most FIIs were from US, seems like it isnt. Is this one reason why even a depreciating INR vs USD still continue to attract inflows?
It is the result of technical and fundamental factors and nothing else.