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Views On Morning Nifty and Derivative comments 09 June 2023 by Anand James - Chief Market Strategist at Geojit Financial Services

Nifty outlook:  

Rejection trades evolved precisely from 18676, as feared, but luckily the dips below 18595 did not lead to a collapse as such. This encourages us to play for a pull back, should we see Nifty floating above 18595 early in the day. Directional trades will have to wait for 18720 to be cleared through. Alternatively, in the event of 18500 giving away, 18430 will hold only a slim chance of holding with 18200 emerging as the first downside target, while also raising the vulnerability of the 50DMA now positioned at 18047.  

Derivative:

Nifty weekly contract has highest open interest at 18700 for Calls and 18700 for Puts while monthly contracts have highest open interest at 19000 for Calls and 18000 for Puts. Highest new OI addition was seen at 18600 for Calls and 18300 for Puts in weekly and at 18900 for Calls and 17800 for Puts in monthly contracts. FIIs increased their future index long position holdings by -8.29%, increased future index shorts by -0.20% and in index options by 31.72% in Call longs, 23.40% in Call short, 60.73% in Put longs and 11.86% in Put shorts.

USD-INR outlook:

Expect 82.35-82.25, should we see reluctance to float above 82.50. Directional trades may wait, however. Deeper support is seen at 81.96, while it may require a push above 81.75 to signal chances of upside breakout.   

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