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Nifty outlook:  

As Nifty struggles to stop the slide that now aims atleast 17255-17050, a pull back above 17420 could signal that Nifty is in the mood to shrug off bearish vibes. And, once 17520 is cleared, 17800-18200 will be back in the radar. Alternatively, inability to float above 17420-520 band will attract rejection trades, which would have the potential for an expansive plunge towards 16500-200. While this is a possibility, we will go in this week not expecting an outright collapse.

Derivative:

Nifty weekly contract has highest open interest at 18000 for Calls and 17400 for Puts while monthly contracts have highest open interest at 18000 for Calls and 17000 for Puts. Highest new OI addition was seen at 17500 for Calls and 17400 for Puts in weekly and at 17400 for Calls and 17400 for Puts in monthly contracts. FIIs increased their future index long position holdings by -19.06%, increased future index shorts by 7.94% and in index options by 43.95% in Call longs, 20.72% in Call short, 60.85% in Put longs and 35.84% in Put shorts.

USD-INR outlook:

There are no signs of a directional move yet, despite the bias tilting towards upsides. We Expect feeble upsides towards 82.04 initially, but will wait for a push beyond 82.27 to play directional upsides aiming 82.4 or even 83 again. Alternatively, inability to float above82.91 could render a sideways bias to the trend.  

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