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

Nifty outlook: 

The turn lower from 18660 has now stretched into the 18530-430 support region, allowing some deal of fightback from the bulls. While the turn of events is within expected lines, the longer we stay under 18530, the higher the threat of breach of 18430, despite it being quite a strong support. Expect sideways trades today, with sellers waiting to dominate on rise. Bulls will need an hour’s close or so above 18585 to tilt the bias in their favour.

Derivative:

Nifty weekly contract has highest open interest at 18600 for Calls and 18500 for Puts while monthly contracts have highest open interest at 19000 for Calls and 18000 for Puts. Highest new OI addition was seen at 18750 for Calls and 18400 for Puts in weekly and at 18900 for Calls and 18000 for Puts in monthly contracts. FIIs increased their future index long position holdings by -17.99%, increased future index shorts by -3.98% and in index options by - 20.44% in Call longs, -13.36% in Call short, -20.51% in Put longs and -16.33% in Put shorts.

USD-INR outlook:

The expected band of 82.62-82.38 held yesterday, with most of the moves gravitating to the upper boundary. Being long heavy, expect a bit of a pull back, and a consolidation thereof in the 82.50 vicinity, before yet another attempt to stretch higher, potentially towards 82.75, but not much above. Inability to float above 82.5, should see USDINR drifting towards 82.38, while not ruling out a revisit of 82.25. In short, range expansion is expected shortly.

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