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Views On Morning Nifty, Derivative and Rupee comments 16 May 2023 by Anand James - Chief Market Strategist at Geojit Financial Services

Nifty outlook:  

The selling in the last hour, will turn out to be a false signal, should 18440 be reclaimed. In such a scenario,the upside objective may be extended from 18500 to 18579-650. Alternatively, inability to penetrate 18440, or indirect turn below 18381 could lead to 18200 being achieved in haste, while exposing 18066.

Derivative:

Nifty weekly contract has highest open interest at 18500 for Calls and 18300 for Puts while monthly contracts have highest open interest at 18500 for Calls and 18000 for Puts. Highest new OI addition was seen at 18650 for Calls and 18400 for Puts in weekly and at 18700 for Calls and 18400 for Puts in monthly contracts. FIIs increased their future index long position holdings by 12.14%, increased future index shorts by -3.62% and in index options by 13.90% in Call longs, 22.19% in Call short, 16.93% in Put longs and 30.42% in Put shorts.

USD-INR outlook:

The pull back after breaching our first objective of 82.34 hints at hesitation. Look for trades above 82.29 to persist with upsides. Favoured view expects sideways bias, but with continued hopes of renewing upsides. But, slippage past 82.19 could invite liquidation pressure, though major falls are less expected as long as 82.09 holds  

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