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Views On Morning Nifty, Derivative and Rupee comments 19 July 2022 by Anand James - Chief Market Strategist at Geojit Financial Services 

Nifty outlook

Despite a close above 16200 described yesterday as the wall of worry, inability to clear the recent peak of 16275 convincingly, validates the modest objectives that we had set out with at the beginning of the week. This sets up an environment for a pullback to 16145, before consolidating and re attempting another push higher, or extended slippage to 16065 that could close yesterday’s gap. That said, we do not expect a collapse as long as 15970 attracts bargain hunting again and shall until then, remain committed to the 16800 view for the near term. 

Derivative comments

Nifty weekly contract has highest open interest at 16500 for Calls and 16200 for Puts while monthly contracts have highest open interest at 16800 for Calls and 16200 for Puts. Highest new OI addition was seen at 16600 for Calls and 16000 for Puts in weekly and at 17000 for Calls and 16000 for Puts in monthly contracts. FIIs increased their future index long position holdings by -1.38%, increased future index shorts by -12.79% and index options by 24.16% in Call longs, 1.58% in Call short, 3.50% in Put longs and 22.35% in Put shorts.

USD INR 

Pull back above 79.95 has negated the bear move, rendering the overall trend neutral, awaiting a directional push. The 79.95 region will continue to be key, with 79.85-80.15, the narrow band in which USDINR is expected to be in today.

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