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Views On Morning Nifty, Derivative and Rupee Comments as of 02 February 2023 by Anand James - Chief Market Strategist, Geojit Financial Services

Nifty outlook:  

Though the afternoon collapse was steep, the bounce having unfolded not far from the 200DMA, a recovery attempt is certainly in place. A renewed attack on the key MA usually takes some time, and this should encourage upside attempts in the meanwhile. For the day, inability to float above 17555 early in the day, would dilute upside hopes. Favoured view expects wild wings on either side, rather than a directional move.  

Derivative:

Nifty weekly contract has highest open interest at 18000 for Calls and 17500 for Puts while monthly contracts have highest open interest at 18000 for Calls and 17500 for Puts. Highest new OI addition was seen at 18000 for Calls and 17500 for Puts in weekly and at 18600 for Calls and 17700 for Puts in monthly contracts. FIIs increased their future index long position holdings by 2.58%, increased future index shorts by -6.02% and in index options by -9.07% in Call longs, -2.49% in Call short, 6.53% in Put longs and 9.23% in Put shorts.  

USD-INR outlook:

Despite a clean break of recent trading range, there has been a clear disinclination to make large strides on the upside. This points to potential distribution again, but we will look to follow downsides only if below 81.59, with expectations of 81.75 continuing to act as a pivot today.

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