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Views On Morning Nifty, Derivative and Rupee comments 20 April 2023 by Anand James - Chief Market Strategist at Geojit Financial Services

Nifty outlook:  

Upswings failed to take flight despite several attempts yesterday, as has been the case in the last few days. Consequently, a narrowing range pattern appears to be information with 17574 guarding downsides on all days.This sets up an environment for a strong push higher with the 17976 objective back in play. Alternatively, slippage below 17574 or inability to clear 17700/740 on the rise,will deflate upside hopes, but may not lead to a vertical fall as such, with 17500 initially as well as 17370/270ready to step in. Either way, expect expansion in tradingranges.

Derivative:

Nifty weekly contract has highest open interest at 17700 for Calls and 17500 for Puts while monthly contracts have highest open interest at 17700 for Calls and 17000 for Puts. Highest new OI addition was seen at 17650 for Calls and 17500 for Puts in weekly and at 17700 for Calls and 17600 for Puts in monthly contracts. FIIs increased their future index long position holdings by 1.01%, increased future index shorts by 4.17% and in index options by 6.68% in Call longs, 4.90% in Call short, 7.56% in Put longs and 12.28% in Put shorts.

USD-INR outlook:

The anticipated upmove aiming for an 82.4 move is in play, after a day of consolidation allowed USDINR to float above 82.07, our previous objective, encouraging traders to push on. For the day, we will look for consistent trades above 82.2 to continue with upsides, while retaining 82.07 as the downside marker.   

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