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Views On Morning Nifty, Derivative and Rupee comments 05 August 2022 by Anand James - Chief Market Strategist at Geojit Financial Services .

Nifty outlook:

The formation of a broadening wedge pattern puts an end to the blistering series of up moves, but not necessarily the uptrend as such. We have stepped into a consolidation period with ample opportunities for traders on either side, especially given the rise in VIX. Favoured view also expects upside attempts to slow down on approach to 17450-570 region and downside attempts to slow down on approach to the 17220 vicinity. Directional moves may wait for 17570-17160range to be broken.

Derivative

Nifty weekly contract has highest open interest at 17400 for Calls and 17350 for Puts while monthly contracts have highest open interest at 18500 for Calls and 16500 for Puts. Highest new OI addition was seen at 17400 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 -5.20%, increased future index shorts by 8.82% and in index options by -37.44% in Call longs, -31.44% in Call short, -42.80% in Put longs and -36.72% in Put shorts.

USD INR Outlook

Given the sharp rise in volatility yesterday, trading ranges could remain high. Favoured view expects pull back attempts to be held within the 79.2-79.5 vicinity followed by a consolidation.

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