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Nifty outlook:  

There is no point in chasing upsides until above 17950, but dips to 17700-600 band is likely to attract bargain hunting. In other words, a directional move is not yet on the cards. Downside attempts will need to break 17450 before resizable moves unfold. Within this construct, we will go in today looking to buy on dips, as long as above17600.

Derivative:

Nifty weekly contract has highest open interest at 18000 for Calls and 17000 for Puts while monthly contracts have highest open interest at 18000 for Calls and 17500 for Puts. Highest new OI addition was seen at 17800 for Calls and 17000 for Puts in weekly and at 17800 for Calls and 17800 for Puts in monthly contracts. FIIs increased their future index long position holdings by -5.44%, increased future index shorts by 19.47% and in index options by 15.16% in Call longs, 16.20% in Call short, 36.31% in Put longs and 6.74% in Put shorts.

USD-INR outlook:

USDINR has steamed far ahead of our projected objective of 82.5, forcing us to consider the possibilities of revisiting record peaks. However the approach of 83 will slow down the surge calling for dips to 82.6 for fresh long entries. Alternatively, pulling back beyond 82.5 will render the trend weak.  

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