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Views On Morning Nifty, Derivative and Rupee Comments as of 27 December 2022 by Anand James - Chief Market Strategist, Geojit Financial Services

Nifty outlook: 

Conventional wisdom suggests renewed selling after yesterday’srelief rally, which almost met our first objective of 18,100. However, the rejection trades from the 60EMA yesterday may have stabilised the run, suggesting that we may not have to worry too much about a potential profit booking. Towards this end, favoured view expects continuation of uptrend aiming at 18,200. Alternatively, pull back beyond 17,940, could be taken as a bearsign, but we are not inclined to play the 17,670 or deeper, unless below 17,800. 

Derivative:

Nifty weekly contract has highest open interest at 18,200 for Calls and 17,000 for Puts while monthly contracts have highest open interest at 18,200 for Calls and 17,000 for Puts. Highest new OI addition was seen at 18,300 for Calls and 17,800 for Puts in weekly and at 18300 for Calls and 17,800 for Puts in monthly contracts. FIIs increased their future index long position holdings by -2.55%, increased future index shorts by -12.72% and in index options by -11.06% in Call longs, 3.97% in Call short, -13.41% in Put longs and 39.44% in Put shorts.  

USD-INR outlook:

Having slipped towards the lower extremity of our consolidation band of 82.84-82.59, bounce back could be in order. However we are inclined to sell into such rallies as long as below 82.75, while a breach of 82.84/88 may encourage us to look for 83.25.  

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