Subject: Request for Guidance on FII/DII Sentiment Analysis Methodology Used by Sensibull

Zerodha
5

First of all, this is just an indicative system to help beginners, and not a rule based fool proof logic that can be used by an advanced trader to build a trading system

  1. What is the primary metric used to determine direction (bullish/bearish/indecisive)?
    We take into account the current option OI and the change in OI. We benchmark the OI and the change in OI into percentiles of OI and OI change across all participants - FII Client Pro

We categorize OI into different strengths and classify OI change into different strength levels. And then we combine OI and OI change to find a single number. We try to have a verdict ONLY when everything points in the same direction. If any doubt, we try to go with “indecisive”. We would rather be not sure than outright wrong

  • Is it based more on Change in OI, Net OI, or a combination of both?
    Both

  • How is contradictory data (e.g. negative Net OI, positive Change in OI) handled?in this case,sometimes it shows indecisive and sometimes it shows bullish or bearish
    If the OI is strongly bullish and the change is mild, we go with strong overall. And vice versa. Again, this is not a bullet proof heuristic but an indicative guideline

  1. What factors influence the strength classification (mild, medium, strong)?
    We keep it super simple - Like we said above, only OI and OI change

  2. Could you share a working example, even for a past date (e.g., June 27, 2025), with actual numbers and how Sensibull arrived at the sentiment?
    I would suggest not going deep and making a system of this. We would rather that you look at classifications of Strong/ Medium/ Mild as guidelines than anything else. Simply because this categorization is not complete or 100% correct. This is because many things can corrupt data - For example a major change in OI on an expiry day just means contracts going away and not an intentional buy/sell action. Our intention of this classification was just to give some indication.

It is always better if you look at the overall data from first principles, rather than quantify it and throw a verdict using a rule-based system depending on numbers

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