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Nifty outlook: 

We see 16980 and 17100 as critical pivots for the day.Initial trades closer to 17100 will improve confidence in a 17170 breach today, setting off on a 17350 run up.Alternatively, inability to float above 16980 would raise the possibilities towards a 16300 plunge. This outcome is less favoured, despite the sharp pull back on Friday, in the closing hour. 

Derivative:

Nifty weekly contract has highest open interest at 17500 for Calls and 16700 for Puts while monthly contracts have highest open interest at 18000 for Calls and 16000 for Puts. Highest new OI addition was seen at 17500 for Calls and 16700 for Puts in weekly and at 17100 for Calls and 17100 for Puts in monthly contracts. FIIs increased their future index long position holdings by 21.68%, increased future index shorts by -1.97% and index options by 18.74% in Call longs, 18.14% in Call short, 10.21% in Put longs and 74.72% in Put shorts.  

USD-INR outlook:

The slippages failed to evolve into a plunge that we were anticipating. However, the pullback having settled in the 81.6-81.7 vicinity, we are encouraged to keep looking for morefalls. Towards this end, the 80.95 downside objective will be in play today, as long as early trades float below 81.7.

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