IGI Logo

Views On Morning Nifty and Derivative comments 04 September 2023 by Anand James - Chief Market Strategist at Geojit Financial Services

Nifty outlook: 

The proximity of congestion resistance at 19480-500 raises fears of rejection trades again. However, the steepness of the Friday’s rise, as well as the decline in VIX to levels last seen when Nifty was at 19600, encourages us to persist with upsides, with the near term objective extended to 19790. Downside markers are at 19385 or 19361. Inability to float above the same, will again rekindle fears of 18800 or 18300, but the prospects of an outright collapse look limited.

Derivative:

Nifty weekly contract has highest open interest at 19600 for Calls and 19300 for Puts while monthly contracts have highest open interest at 20000 for Calls and 19000 for Puts. Highest new OI addition was seen at 19600 for Calls and 19300 for Puts in weekly and at 20000 for Calls and 19500 for Puts in monthly contracts. FIIs increased their future index long position holdings by -1.86%, increased future index shorts by -3.71% and in index options by 33.25% in Call longs, 37.40% in Call short, 47.82% in Put longs and 72.65% in Put shorts. 

USD-INR Outlook:

The 82.8-82.5 band has continued to restrain USDINR from directional move. Within this construct, a positive bias looks to be emerging, as the lower highs with flat lows resemble a bullish continuation patteern. Upsides may be limited to 82.93 though, with major support below 82.5 seen at 82.2

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