Morning Nifty, Derivative and Rupee comments 12 August 2022 By Anand James, Geojit Financial Services
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Views On Morning Nifty, Derivative and Rupee comments 12 August 2022 by Anand James - Chief Market Strategist at Geojit Financial Services.
Nifty outlook:
The 17690 region that was tipped to act as a pivot proved to be too stubborn yesterday. With VIX falling, traders appeared in no mood to chase prices on either side, resigning Nifty to sideways moves yesterday. There is no assurance towards a breakout move today, but despite a negative close yesterday, and despite the oscillators staying in overbought conditions for a long time now, favoured view expect dips to be bought as long as 17607 does not give away. The 18100-18200 objective looks a big ask for today, but 17800-835 is an achievable objective. Alternatively, inability to float above 17607, will signal a move downwards aiming17000, but it carries a low probability for now.
Derivative:
Nifty weekly contract has highest open interest at 17700 for Calls and 17650 for Puts while monthly contracts have highest open interest at 17700 for Calls and 17600 for Puts. Highest new OI addition was seen at 17700 for Calls and 17300 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 9.60%, increased future index shorts by -3.06% and in index options by -27.44% in Call longs, -30.74% in Call short, -42.67% in Put longs and -26.82% in Put shorts.
USD INR Outlook:
Though the pullback yesterday was on anticipated lines, it breached the 79.45 mark which was expected to hold firm. This ushers in volatility, with a higher likelihood of revisiting the80 mark soon. Meanwhile, 79.8 and 79.37 will act as important pivots for the day.
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