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

Nifty outlook

We had gone into last Monday, with 16200 for the week as the base case scenario followed by a turn lower, and 17000 for the medium term as the optimistic scenario. With Friday's opening burst meeting rejection trades at the 60d SMA of 16280,the strength of uptrend would be put to test today, and favoured view expects a turn lower or a consolidation. A push above 16235early in the day, would encourage up moves to aim for 16340during the day, but sustainability is doubted. Inability to float above 16195 will expose 16150, Friday’s strong support, as well as 16115, the downside marker for the present up move, with15940 seen as catchment area, in the event of major downsides.

USD INR

USDINR is poised for rapid ascent to 79.9, followed by 81, with downside risk marker placed at 78.9or 78.5. Intraday, inability to float above 79.25 could prompt slippages until 79.11 before bargain buying resurfaces.

Derivative comments

Nifty weekly contract has highest open interest at 16900 for Calls and 16200 for Puts while monthly contracts have highest open interest at 16200 for Calls and 16200 for Puts. Highest new OI addition was seen at 16200 for Calls and 16000 for Puts in weekly and at 17000 for Calls and 15000 for Puts in monthly contracts. FIIs increased their future index long position holdings by 1.25%, increased future index shorts by -7.81% and in index options by 10.82% in Call longs, -3.16% in Call short, 5.56% in Put longs and 7.40% in Put shorts.

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