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Nifty outlook:  

Though 18290 effected an outright reversal, the downsides slowed down after stretching briefly below18167, the second turnaround point pencilled in for yesterday. The consolidation thereof encourages us to fit the evolving pattern into a bullish gartley with projected target of 18660. Alternatively, a repeat attack of 18105would invalidate the gartley, though a collapse beyond17800 is ruled out.  

Derivative:

Nifty weekly contract has highest open interest at 18400 for Calls and 18000 for Puts while monthly contracts have highest open interest at 18500 for Calls and 18000 for Puts. Highest new OI addition was seen at 18200 for Calls and 18000 for Puts in weekly and at 18200 for Calls and 17800 for Puts in monthly contracts. FIIs increased their future index long position holdings by 4.61%, increased future index shorts by -1.92% and in index options by - 24.82% in Call longs, -20.05% in Call short, -48.89% in Put longs and -36.27% in Put shorts.   

USD-INR outlook:

Upside breakout is surely in motion, confirmed by the expansive moves on successive days. But with only 83 the nearest peak seen ahead, expect volatility to set in, as we have come a long way up. This prompts us to keep 82.65 as downside risk level for the day.