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Nifty outlook: 

The pull from 17000 has become irresistible now. That it coincides with the 200 day SMA makes it all the more compelling for Nifty to pay a visit, now that Friday closed just 1.7% away from it. Even more so, because the 38.2% fibo of the Jun-Sepmove is also at the same level. Ideally, a breach of 17000, willbring in 16000 into picture, with interim support seen at 16650.Meanwhile, given that a sharp draw down is already in place, we will watch the ability of 17166, the recent reaction low, to let bulls regroup early in the day and aim for a recovery push and 17430.  

Derivative:

Nifty weekly contract has highest open interest at 17500 for Calls and 17500 for Puts while monthly contracts have highest open interest at 17500 for Calls and 16800 for Puts. Highest new OI addition was seen at 18000 for Calls and 16500 for Puts in weekly and at 18000 for Calls and 16000 for Puts in monthly contracts. FIIs increased their future index long position holdings by -19.17%, increased future index shorts by 26.52% and in index options by 45.47% in Call longs, 23.58% in Call short, 53.99% in Put longs and 28.02% in Put shorts.  

USD-INR outlook:

We continue to scout for the upside target of 81.8 with downside marker placed at 80.7 for now.  

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