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Views On Morning Nifty, Derivative and Rupee comments 01 August 2022 by Anand James - Chief Market Strategist at Geojit Financial Services .

Nifty outlook:

Even though oscillators are overbought, zeroing in on a turnaround point is an onerous task, as continuation patterns and momentum remains dominant, suggesting that a significant fall prior to achievement of 17500 is less likely. This is the premise on which we had expressed confidence in continuation of uptrend after the opening burst on Friday. That said, we will keep the vigil for potential withdrawal in buyers, on approach to17320 and 17045 identified on either sides of present level. Major supports are seen at 16960 and 16800/750 regions.

Derivatives:

Nifty weekly contract has highest open interest at 17600 for Calls and 17000 for Puts while monthly contracts have highest open interest at 17100 for Calls and 17100 for Puts. Highest new OI addition was seen at 17600 for Calls and 17000 for Puts in weekly and at 18000 for Calls and 16500 for Puts in monthly contracts. FIIs increased their future index long position holdings by 16.51%, increased future index shorts by 1.89% and index options by 46.35% in Call longs, 42.80% in Call short, 75.03% in Put longs and 49.18% in Put shorts.

USD INR: 

The rejection trade that we have been playing for the last two days, aiming downsides to 79.40 and beyond, is in motion. We will look for an extension today, expecting 79.05, as long as we do not close back above 79.40 today, or as long as intraday spikes are held below 79.7

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