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Views On Morning Nifty and Derivative comments 07 August 2023 by Anand James - Chief Market Strategist at Geojit Financial Services

Nifty outlook: 

Ideally, the ongoing relief rallies should aim for 19740s again. However, as maintained on Friday, the prospects of a regrouping of bears is also equally likely if not higher. Yet, we are inclined to stick with upswings, with an eye on 19600-620-670, from where distribution is likely to resurface. Once clear of these points, the 20600 trajectory would be clearer. Alternatively, inability to float above 19490 early in the day, could require consolidation deep down near 19450-415, before re attempting upsides, but a direct fall below 19380, while not expected, will tilt the bias decidedly in favour of bears.- Read more

Derivative:

Nifty weekly contract has highest open interest at 19600 for Calls and 19400 for Puts while monthly contracts have highest open interest at 19800 for Calls and 19200 for Puts. Highest new OI addition was seen at 19600 for Calls and 19500 for Puts in weekly and at 19800 for Calls and 19500 for Puts in monthly contracts. FIIs increased their future index long position holdings by 12.21%, increased future index shorts by -4.16% and in index options by 28.84% in Call longs, 43.79% in Call short, 41.21% in Put longs and 89.76% in Put shorts. - Read more

USD-INR outlook:

As earlier, the approach to 83 vicinity has deflated the upside momentum. Despite couple of days of attempts to make further headway, USDINR has not been able to clear 82.75/82.90 region. This could pave way for deeper dips to 82.5 before re attempting upsides again. - Read more

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