* US$INR futures fell on Friday as the dollar index remained under pressure against basket of major currencies. However, a sharp correction in domestic equities provided support to the pair.
* The U.S. dollar index remained weak on Friday as investors sought safety amid concerns about a resurgence in coronavirus cases in Europe and a lack of progress in U.S. fiscal stimulus negotiations.
* Despite starting the day on a positive note, Call writers of OTM strikes dominated the day and dragged the Nifty lower. The Nifty tested its Put base of 11500 due to selling in heavyweights. On the weekly option front, 11500 ATM strike of Call and Put has significant OI, by looking at combine premium of 11500 strike suggesting it may largely consolidate between 11300 and 11600 levels.
* For a major part of the day, the Bank Nifty remained under pressure due to selling in private banks along with PSU and midcap banks.
FII & FPI Activities
* Foreign institutional investors (FII) were net sellers to the tune of ₹ 399 crore on September 17, 2020. They sold worth ₹ 131 crore in the equity market and also sold worth ₹ 268 crore in the debt market. In the month of September, FIIs have bought equities worth ₹ 4124 crore so far, while in Debt market they have bought worth ₹ 2286 crore so far.
Rupee Outlook and Strategy
* Heightening U.S.-China tensions due to a Trump administration plan to ban WeChat and video-sharing app TikTok from U.S. app stores may put further pressure on the dollar.
* The dollar-rupee Sep contract on the NSE was at ₹ 73.48 in the last session. The open interest in the Sep series increased by 3.71%, while it also increased by 9.02% in the next series.
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