IGI Logo

Nifty outlook: 

With 16860 encouraging bulls to regroup on anticipated lines, the play today would be to see how far Nifty could stretch on the bounce. The 17170 region is a natural resistance. We expect this to be overcome, but fear that long liquidation pressure will re-emerge much before 17350 is achieved. As maintained earlier, rejection trades would rekindle prospects of 16650-16300. 

Derivative:

Nifty weekly contract has highest open interest at 17000 for Calls and 16000 for Puts while monthly contracts have highest open interest at 17000 for Calls and 16800 for Puts. Highest new OI addition was seen at 17000 for Calls and 16000 for Puts in weekly and at 17000 for Calls and 16700 for Puts in monthly contracts. FIIs increased their future index long position holdings by 64.12%, increased future index shorts by 16.54% and index options by 9.26% in Call longs, 12.57% in Call short, -1.33% in Put longs and 14.50% in Put shorts.  

USD-INR outlook:

The sharp pull back after playing around in the 82 vicinity hints at bullish exhaustion. Inability to pull back above 81.6 would confirm a drop extending as far as 80.95. Alternatively, expect sideways moves while above 81.6.  

Above views are of the author and not of the website kindly read disclaimer