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Nifty outlook: 

While offering little or no visibility on the upside prospects for the last few days, we had been systematically pointing towards the extent of downsides that were to follow. We would soon be entering the 18,300-100 band which we had marked down yesterday. This region has the potential to either cool down the nerves, or to set off a powerful plunge that could revive talks of 16,800 again. However, the favoured view expects a pull back towards 18,480-520 region first, performance at which region would be crucial for setting further moves. A collapse is not the most favoured outcome though.  

Derivative:

Nifty weekly contract has highest open interest at 18,600 for Calls and 18,400 for Puts while monthly contracts have highest open interest at 19,000 for Calls and 18,000 for Puts. Highest new OI addition was seen at 18,450 for Calls and 18,400 for Puts in weekly and at 18,800 for Calls and 17,900 for Puts in monthly contracts. FIIs increased their future index long position holdings by -9.39%, increased future index shorts by 14.35% and in index options by -31.46% in Call longs, -26.35% in Call short, -30.70% in Put longs and -43.70% in Put shorts.  

USD-INR outlook:

Despite early hiccups, Uppish bias prevailed for the rest of the day as soon as USDINRstabilised above the 82.65 level discussed yesterday. We are yet to cross the 82.91-83 band though, until which time, sideways moves may be expected.  

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