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

Nifty outlook:  

Yesterday turned up every bit the bear trap that we had cautioned yesterday, while also exceeding the 18200 objective that we had set out with. With this, we have now entered the congestion region that had reigned in many advances in December 2022 and earlier. This calls for caution, and prompts us to wait for a close above 18250 or reasonable consolidation to play the 18600 objective that we had pencilled in at the start of the week. Expect mean reversion plays to drag prices into the 18010 vicinity or lower. However, if 18196 manages to attract enough bargain hunting except downside plays to be delayed.

 Derivative:

Nifty weekly contract has highest open interest at 18300 for Calls and 18200 for Puts while monthly contracts have highest open interest at 18500 for Calls and 18000 for Puts. Highest new OI addition was seen at 18300 for Calls and 18250 for Puts in weekly and at 18700 for Calls and 18200 for Puts in monthly contracts. FIIs increased their future index long position holdings by 1.61%, increased future index shorts by -3.97% and in index options by - 40.18% in Call longs, -30.62% in Call short, -50.85% in Put longs and -37.57% in Put shorts.