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Nifty outlook:  

Upside momentum fizzled out without making much headway beyond the recent peak of 18267, hinting at exhaustion. This assumption gets support from the formation of a broadening wedge pattern that could limit upside to 18350. This needs confirmation from a break of 18217-188 region though to play an 18066-17800 move. Alternatively, expect upside bias to thrive, as long as above 18267.  

Derivative:

Nifty weekly contract has highest open interest at 18500 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 18500 for Calls and 18200 for Puts in weekly and at 18700 for Calls and 18000 for Puts in monthly contracts. FIIs increased their future index long position holdings by 15.57%, increased future index shorts by -2.21% and in index options by - 10.32% in Call longs, -1.89% in Call short, -6.78% in Put longs and 27.40% in Put shorts.

USD-INR outlook:

We got as far as the first challenge of 81.8, but without a break momentum failed to kick in. We will go in today expec?ng the same, aiming 81.97-82.07, as long as dips do not stretch beyond 81.70. Meanwhile, a close below 81.55 could expose 80.85 as maintained last week.    

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