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Views On Morning Nifty, Derivative and Rupee comments 11 August 2022 by Anand James - Chief Market Strategist at Geojit Financial Services.

Nifty outlook:

With dips slowing well before our turnaround point yesterday, the attempt to regroup and aim for 17750 was on full display, making way for achieving the target today. The 17750 region has been a central character in several of the major moves since November 2021, and the approach so effortlessly hints at the strength of the bullish undercurrents and encourages us to continue looking forward to the short term objective of 18100discussed last Thursday. Oscillators are overbought, but they have been so for some time already now, and have been less effective because of the directional nature of the index. Hence, we will hunt for vulnerability only on the rise to 18200 in the next few days, or on pull back below17570 today after the early burst, with 17690 tipped to act as an important pivot.

Derivative:

Nifty weekly contract has highest open interest at 17800 for Calls and 16900 for Puts while monthly contracts have highest open interest at 18200 for Calls and 17000 for Puts. Highest new OI addition was seen at 18000 for Calls and 17000 for Puts in weekly and at 18000 for Calls and 17000 for Puts in monthly contracts. FIIs increased their future index long position holdings by -10.18%, increased future index shorts by 1.44% and in index options by -3.11% in Call longs, 5.51% in Call short, 11.51% in Put longs and -7.26% in Put shorts.

USD INR Outlook:

The consolidation evolved on anticipated lines, but the slippage past 79.3 ushered in a surprise negative bias, which could hold for a while. A pull back could be seen today given the sharp downsides of yesterday, but they are less likely to breach 79.45, with a higher likelihood of selling reemerging from the 79.15-79.25 region.

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