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Nifty outlook:  

Nifty played around 18595 for most part of yesterday, giving little insights as to the directional bias, with several event risks lined up ahead. Meanwhile, it was noteworthy that while downswings were sizable and few, upswings were several and small. While this lends a neutral bias for now, it also allows for continuation in the direction of the default trend, which is up. However, momentum is missing, with 18720-18887-19070 appearing to stand in the way of directional upsides. While we will continue to eye 18595, watchout for possible rejection trades or distribution on approach of 18676. Alternatively, as maintained yesterday, 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. This though is less favoured now.  

Derivative:

Nifty weekly contract has highest open interest at 18700 for Calls and 18600 for Puts while monthly contracts have highest open interest at 19000 for Calls and 18000 for Puts. Highest new OI addition was seen at 19150 for Calls and 18600 for Puts in weekly and at 19200 for Calls and 18600 for Puts in monthly contracts. FIIs increased their future index long position holdings by -54.27%, increased future index shorts by -72.98% and in index options by 332.21% in Call longs, 356.73% in Call short, 460.96% in Put longs and 763.63% in Put shorts.

USD-INR outlook:

Lacklustre trades dominated the day. We will continue to eye 82.35-82.25, as long as USDINR remains reluctant to float above 82.50. Deeper support is seen at 81.96, but directional trades may unfold quickly should we see a push above 82.75.

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