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Views On Morning Nifty, Derivative and Rupee comments 12 July 2022 by Anand James - Chief Market Strategist at Geojit Financial Services 

Nifty outlook

Having swung higher exactly from yesterday’s downside marker, the subsequent momentum should have led to a close above 16235/280 region to convince us to switch from the bearish view that had taken going into yesterday. Towards this end, extend Nifty’s slippage to extend to 16040 today and to 15950 shortly. Upside reversal marker may be placed at 16150 in that case.

Derivative

Comments: Nifty weekly contract has highest open interest at 16600 for Calls and 16100 for Puts while monthly contracts have highest open interest at 16100 for Calls and 16100 for Puts. Highest new OI addition was seen at 16600 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 1.09%, increased future index shorts by 7.00% and index options by 18.36% in Call longs, 20.67% in Call short, 22.74% in Put longs and 19.45% in Put shorts.

USD INR

The rapid ascent to 79.9 that USDINR was lined up for yesterday, stalled at the 79.56 vicinity followed by a close near 79.43. This forces us to bring up 79.25 as the downside marker, as oscillator divergences are beginning to weigh heavily on the bullish momentum, calling for a dip. Brace for large moves.

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