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Views On Morning Nifty and Derivative comments 05 July 2023 by Anand James - Chief Market Strategist at Geojit Financial Services

Nifty outlook: 

Bulls and bears exchanged blows, underscoring the even footing that we discussed yesterday. And yet, we will start the day with prevailing uptrend’s momentum attempting to dominate early in the day, while above 19377. However, yesterday’s spinning top elevates the chances of a sizeable downside attempt as the day proceeds. This encourages us to employ bearish bets with upside marker at 19479, aiming 19125. This view however, will be invalidated, if 19320-250 region holds in the event of a slippage, or if 19479 is breached during upside attempts.

Derivative:

Nifty weekly contract has highest open interest at 19400 for Calls and 19300 for Puts while monthly contracts have highest open interest at 19500 for Calls and 18500 for Puts. Highest new OI addition was seen at 19550 for Calls and 19400 for Puts in weekly and at 19400 for Calls and 19400 for Puts in monthly contracts. FIIs increased their future index long position holdings by 10.35%, increased future index shorts by 2.57% and in index options by - 13.85% in Call longs, 0.86% in Call short, -22.26% in Put longs and -4.94% in Put shorts.

USD-INR outlook:

A feeble upside bias has emerged, which may be played, aiming 82.1, as long as 81.95 holds. Inability to 81.95 to hold could render the trend sideways inside the 82.85-82.1 band.

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