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Nifty outlook: 

Though yesterday’s pull back failed to gather momentum,the drop towards 17800 also failed to gain speed, setting up for a breakout move shortly. This suggests that another go at 18100 may unfold, followed by a potential breakout higher, though full achievement of 18320 looks doubtful. Alternatively, inability to float above 17940 after the early positivity, will signal that a break below 17800 is in order, though the 17300 view might take awhile to mature.

Derivative:

Nifty weekly contract has highest open interest at 18000 for Calls and 17800 for Puts while monthly contracts have highest open interest at 18000 for Calls and 18000 for Puts. Highest new OI addition was seen at 18150 for Calls and 17800 for Puts in weekly and at 17900 for Calls and 17900 for Puts in monthly contracts. FIIs increased their future index long position holdings by -6.15%, increased future index shorts by -2.37% and in index options by -1.92% in Call longs, 4.58% in Call short, -4.36% in Put longs and 14.09% in Put shorts.  

USD-INR outlook:

Downsides persisted as upsides failed to find momentum, once in the vicinity of our turnaround point of 81.78. A breach of the same is still likely, but we do not see past 82.15for now. An outright collapse towards 80.98, discussed yesterday, is also less likely.  

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