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Nifty outlook:  

The bounce off the 200DMA helped prices higher on anticipated lines, though there were some uncertain moments early while near our downside marker of 17555. And yet, momentum usually associated with short squeeze was missing, which suggests that bears are still lurking around. Nevertheless, we will begin the day with a positive bias, with expectations of reclaiming 18000, if able to float above 17650. Expect uncertainty early in the daynear the 17650 vicinity, but unless well below 17555, directional downsides are less expected, but will be cautious on first approach to 17800.

Derivative:

Nifty weekly contract has highest open interest at 18500 for Calls and 16100 for Puts while monthly contracts have highest open interest at 18000 for Calls and 17500 for Puts. Highest new OI addition was seen at 18500 for Calls and 16100 for Puts in weekly and at 17600 for Calls and 17600 for Puts in monthly contracts. FIIs increased their future index long position holdings by 6.95%, increased future index shorts by 25.66% and in index options by -24.98% in Call longs, -18.36% in Call short, -34.62% in Put longs and -42.89% in Put shorts.  

USD-INR outlook:

An hour of trade above 81.75 encouraged USDINR to re attempt upsides that had failed to find momentum on the previous days. This move should ideally see 82.5, but a pull back below 81.90 will negate such hopes.