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Nifty outlook:  

The morning star finish on Friday encourages us to stick with the 17470 trajectory that we had embarked on, late last week, anticipating a relief rally. Alternatively, stalling in the 17100-185 band could signal that the recovery attempt is short lived, but we would wait for a break of 16800, to re-assess the prospects of a 16200-15500 plunge. This is not our favoured view for nowthough, and will continue to hope that upswings will gain momentum without stretching much beyond 17000, but we do need a break beyond 17224 to be more confident.

 Derivative:

Nifty weekly contract has highest open interest at 17800 for Calls and 17000 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 17100 for Puts in weekly and at 17500 for Calls and 16500 for Puts in monthly contracts. FIIs increased their future index long position holdings by -7.61%, increased future index shorts by 3.38% and in index options by 11.08% in Call longs, 2.66% in Call short, 7.70% in Put longs and 37.06% in Put shorts.

USD-INR outlook:

The 82.24 objective lined up late last week, continues to be in play. However, expect momentum to be derailed, should 82.66 be reclaimed early in the day, but we don't expect vertical rallies, until 82.81 is reclaimed.  

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