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Nifty outlook: 

A negative divergence in MACD has begun to weigh on prices, but an outright collapse is not the output projected by the present structure. We will go in today expecting dips first, but with expectations of a consolidation once inside the 18,470-18,320 region.Penetration of the same should set up a drop towards 18,040-17,850. It would require a pull back above 18580early in the day to blow away negative vibes for the day.

  Derivative:

 Nifty weekly contract has highest open interest at 19,000 for Calls and 18,500 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 18800 for Calls and 18,500 for Puts in weekly and at 18,600 for Calls and 18600 for Puts in monthly contracts. FIIs increased their future index long position holdings by 12.73%, increased future index shorts by 1.36% and in index options by 8.80% in Call longs, 15.73% in Call short, 6.74% in Put longs and 23.77% in Put shorts.  

USD-INR outlook:

We continue to expect a 82 to 82.2 move, but a consolidation is favoured initially in the81.70-81.53 band. Alternatively, inability to float above 81.53 could dilute our upside expectations though a collapse is ruled out until above 81.35  

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