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Views On Morning Nifty, Derivative and Rupee comments 20 July 2022 by Anand James - Chief Market Strategist at Geojit Financial Services 

Nifty outlook

The dip, consolidation and the push higher expected yesterday, unfolded even before testing our turnaround level of 16145,ending up in successfully closing above the wall of worry of 16200-16275. This has triggered the next leg of upsides aiming16800, the near term target that we had set out with, at the start of the week. However, given how the short term oscillators have run up in the last three days, a pull back below 16450 after the opening surge, may be taken as a cautionary signal.

Derivative comments

Nifty weekly contract has highest open interest at 16600 for Calls and 16300 for Puts while monthly contracts have highest open interest at 16700 for Calls and 16300 for Puts. Highest new OI addition was seen at 16600 for Calls and 16200 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 16.94%, increased future index shorts by 0.88% and index options by 8.38% in Call longs, 11.12% in Call short, 7.61% in Put longs and 19.30% in Put shorts.

USD INR 

The narrow band of 79.85-80.15 outlined for yesterday, held firm, setting up the environment for a breakout soon. We will continue our vigil along this range, before playing directional moves, with 79.95 continuing to be a crucial pivot.

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