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Nifty outlook: 

Each of the upside attempts yesterday were rejected summarily, after fully meeting our upside objective of17580, underscoring how exhausted the trend turned out after 4 days of successive gain. This allows a retest of key pivots at 17360/12 or 17240/180, the levels we cautioned again yesterday as well. This pull back having unfolded just short of the declining trendline, a trend reversal needs to be guarded against, with downside risk markers spaced.  

Derivative:

Nifty weekly contract has highest open interest at 17600 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 17600 for Calls and 17500 for Puts in weekly and at 17600 for Calls and 17500 for Puts in monthly contracts. FIIs increased their future index long position holdings by 3.58%, increased future index shorts by 3.76% and in index options by 11.16% in Call longs, 15.90% in Call short, 24.06% in Put longs and 8.78% in Put shorts.  

USD-INR outlook:

Yesterday’s upmove far exceeded the target of 82.63 that we had set out with. The pause yesterday near 83 near close, does not appear to be an end in itself as we expect atleast 83.3before any meaningful turn. Alternatively, inability to float above 83 will force a dip, but they may attract buying until below 82.8.  

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