Three rules to read flow without turning it into the verdict
Flow is a sentence about yesterday. It is one of many sentences in the same paragraph. Read it as a sentence, not the headline. The headline lives in the price.
RULE 01
A flow print is a record. Not a forecast.
By the time you read it on your screen, the trade was placed before the bell and the price has already absorbed it. Use it to understand what happened. Not to decide what happens next.
RULE 02
FII selling Reliance and FII selling Nifty are different problems.
The cash flow file is one number across thousands of names. The same Rs 5000 cr can be a rebalance out of two heavyweights or a thin sell across the universe. Same headline. Very different consequence for a basket you actually own.
RULE 03
The structural buyer is your behaviour. SIP arrives every trading day.
Rs 26500 cr a month of monthly SIP lands at AMCs. Spread across 21 trading days that is roughly Rs 1260 cr arriving daily. The number does not care about the headline. Pick the portfolio you would still hold if the next flow print was the opposite of what you hoped for.
The line that pays
Flow is a sentence about yesterday. The verdict is in the price. The portfolio is your behaviour.
Behavioural mechanics, flow vs price reads, and portfolio construction walk-throughs live in the Learn library.
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