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Below are Views On Morning Nifty, Derivative and Rupee comments 31 January 2022 by Anand James - Chief Market Strategist at Geojit Financial Services 

Nifty outlook

Friday’s rise above 17250 was cut short and Nifty had to revert to our key pivot of 17100. Neither the distribution in the 17250-350 region, nor the bargain hunting again was unexpected, given the rising VIX, and Nifty has not appeared to stray from the 17520- 700 trajectory. But, as maintained earlier, downside prospects are not entirely cast aside, but the 15900 objective will not be brought into calculations until 16950 is broken again, 17390 refuses to give away in the next couple of days.

USD INR outlook

Inability to float above 75.16 has rendered the trend a bit volatile, and did test our intraday pivot of 74.90/80, could however give downsides more momentum, aiming 74.40 again. It would require a close above 75.16 to return to the 75.7 trajectory.

Derivative comments

Nifty weekly contract has highest open interest at 18000 for Calls and 16700 for Puts while monthly contracts have highest open interest at 18000 for Calls and 18000 for Puts. Highest new OI addition was seen at 19000 for Calls and 15100 for Puts in weekly and at 18000 for Calls and 16500 for Puts in monthly contracts. FIIs increased their future index long position holdings by -5.64%, increased future index shorts by 20.53% and in index options by 15.15% in Call longs, 10.08% in Call short, 41.15% in Put longs and 29.67% in Put shorts.

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