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Nifty outlook:  

The full achievement of the 16930 target, as well as the proximity of the lower extremity of a multi month trend channel, encourages us to look at reversal chances. Whilethe closing hour yesterday did not leave any false hopes of recovery, the previous day had a similar trading pattern, albeit with similar peak, but lower low. This Amplifies the positive divergences that have been persisting for a while now, setting up a recovery rally towards 17470. Alternatively, inability to clear 17185 or inability to float above 17030 will allow the 16800 trajectory to continue.  

Derivative:

 Nifty weekly contract has highest open interest at 17200 for Calls and 16800 for Puts while monthly contracts have highest open interest at 18000 for Calls and 17000 for Puts. Highest new OI addition was seen at 17200 for Calls and 16900 for Puts in weekly and at 17700 for Calls and 16600 for Puts in monthly contracts. FIIs increased their future index long position holdings by -14.18%, increased future index shorts by -2.67% and in index options by -5.81% in Call longs, -2.37% in Call short, 0.39% in Put longs and 10.30% in Put shorts.  

USD-INR outlook:

The pull back was restricted to the initial moments, and a quick push above our turnaround level of 82.36 was enough to rekindle positivity again. However before a breakout rally is pencilled in, it must be acknowledged that the 83 region has deflated the momentum of many rallies earlier. This prompts us to wait for a break beyond 83 before pursuing upsides. Downside marker for now is placed at 82.81.  

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