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Views On Morning Nifty and Derivative comments 04 July 2023 by Anand James - Chief Market Strategist at Geojit Financial Services

Nifty outlook: 

A brief downswing and consolidation thereof yesterday positions bulls and bears more evenly than earlier. Yet, momentum favours upsides which encourages us to look for 19394 today. Alternatively, slippage past 19300 will have to be seen as initial signs of weakness, but we will wait for a fall below 19350 to play such downsides. Even in such scenario, we do not see a weakness that is large enough to stretch as far as 19100 or 18980.

Derivative:

Nifty weekly contract has highest open interest at 19500 for Calls and 19300 for Puts while monthly contracts have highest open interest at 19500 for Calls and 18500 for Puts. Highest new OI addition was seen at 19300 for Calls and 19300 for Puts in weekly and at 19800 for Calls and 19300 for Puts in monthly contracts. FIIs increased their future index long position holdings by 2.34%, increased future index shorts by -3.28% and in index options by 20.81% in Call longs, 7.30% in Call short, 28.74% in Put longs and 3.42% in Put shorts

USD-INR outlook:

A range break failed to see directional moves, but it is encouraging to see USDINR gaining momentum. Though the downsides turned out to be brief, 81.9 and 82.1 now aims to keep a lid on upswings, with a view to seeing 81.7 or 81.5.   

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