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Nifty outlook: 

There is a sense of relief having achieved 18470, the level that we have been eyeing ever since spotting exhaustion in the 18900 vicinity. Bulls now will have more freedom to regroup, and a morning star pattern in 60m signals room for upswings. However,inability to push beyond 18560 will suggest an extension indownsides aiming the low 18300s, but an outright collapse is not favoured. Now that we have fully played out a week long downsides, we are encouraged to wait out the first day and scout for long entries.

  Derivative:

Nifty weekly contract has highest open interest at 18600 for Calls and 18600 for Puts while monthly contracts have highest open interest at 19000 for Calls and 18000 for Puts. Highest new OI addition was seen at 18600 for Calls and 18200 for Puts in weekly and at 18500 for Calls and 17500 for Puts in monthly contracts. FIIs increased their future index long position holdings by -6.17%, increased future index shorts by 4.52% and in index options by 38.90% in Call longs, 33.63% in Call short, 97.39% in Put longs and 24.15% in Put shorts.  

USD-INR outlook:

Weakness eased after brief slippage past 82.17 on anticipated lines, and upswings were aplenty in the second half of Friday. This sets up the stage to scale the recent reaction high of 82.76. Alternatively, inability to float above 82.48 would signal rejection trades, forcingUSDINR to trade sideways or seek support from 81.9. 

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