In this paper, Physical Layer Network Coding (PLNC) based bidirectional Decode and Forward (DF) relay network is proposed using Spatial Modulated Full Duplex (SMFD) nodes. In the proposed network, the source nodes exchange two bits of information in single time slot. The Most Significant Bit (MSB) of the data symbol is used for transmit antenna selection and LSB is transmitted by the selected transmit antenna. The self-interference at the SMFD nodes are modeled as Gaussian and its variance is based on thermal noise power. Analytical expressions are derived for upper and lower bound end-to-end outage probabilities of the proposed network in Rayleigh fading environment. The outage performance of the proposed network is better than the conventional PLNC based bidirectional full duplex (CFD) relay networks.