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

Nifty outlook: 

A turn lower was set off on Friday without heading into the 18,300-400 region which we had presumed to be a supply zone. This encourages us to look for continued upsides, even though we are close to the 18,400 objective that we have been playing since the turn higher from the 17,800 vicinity. The prospects of 18,600 or more appears feasible in that context, but slippage past 18,000 again would force us to abandon the upside views, and instead hunt for 17,500.

Derivative:

Nifty weekly contract has highest open interest at 19,000 for Calls and 18,000 for Puts while monthly contracts have highest open interest at 18,200 for Calls and 17,500 for Puts. Highest new OI addition was seen at 18,200 for Calls and 18,200 for Puts in weekly and at 19,200 for Calls and 17,500 for Puts in monthly contracts. FIIs increased their future index long position holdings by -2.68%, increased future index shorts by 25.50% and in index options by 81.48% in Call longs, 50.38% in Call short, 185.04% in Put longs and 27.79% in Put shorts.  

USD-INR outlook:

As maintained all through last week, we will continue to see the 82.84/88 region as a supply zone, even though downside momentum has failed to kick in. Negative bias will continue until then, but once above 82.88, the 83.25 view would have to be reconsidered.But a directional upside is less likely and favoured view expects extended consolidation inside 82.75-82.59.  

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