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Nifty outlook:  

With no visible signs of weakness, except for an excessive exuberance during the push above 18000 in the dying moments of last Friday, we will start today with 18600 as a fair objective, sticking to a trend following approach that has kept us on the right side of the market for the last three weeks. The nearest peaks of 18134 and 18200 thus became the two challenges for the day. Meanwhile, outright slippage past 18000 also would be sufficient to signal weakness, but bargain hunting may resurface as long as 17880 holds.

Derivative:

Nifty weekly contract has highest open interest at 18000 for Calls and 18000 for Puts while monthly contracts have highest open interest at 18500 for Calls and 17500 for Puts. Highest new OI addition was seen at 18200 for Calls and 18000 for Puts in weekly and at 18500 for Calls and 18000 for Puts in monthly contracts. FIIs increased their future index long position holdings by 14.41%, increased future index shorts by 7.47% and in index options by 32.03% in Call longs, 51.61% in Call short, 58.60% in Put longs and 97.23% in Put shorts.

USD-INR outlook:

Except a mild uppish bias while above 81.79 holds, but expect broad trend to retain a sideways bias as long as within the 81.97-81.55 band.   

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