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Nifty outlook:  

Sellers dominated the proceedings yesterday on anticipated lines, with the early upside attempts being turned lower precisely from the 18585 region. However, the catchment area of 18530-430 continued to absorb the bear attack, allowing bulls to regroup, yet again. We will begin the day hoping to stay above 18480, in which case, the upside objective of 18750 will come into play. Alternatively, while we have high opinion above 18430, slippage past 18480 again could immensely raise the prospects of an extended drop towards 18100-17800. This is not the favoured view though, for now.

Derivative:

Nifty weekly contract has highest open interest at 18500 for Calls and 18450 for Puts while monthly contracts have highest open interest at 19000 for Calls and 18000 for Puts. Highest new OI addition was seen at 18550 for Calls and 18450 for Puts in weekly and at 18600 for Calls and 18600 for Puts in monthly contracts. FIIs increased their future index long position holdings by -14.82%, increased future index shorts by 18.90% and in index options by - 38.15% in Call longs, -35.76% in Call short, -44.69% in Put longs and -50.92% in Put shorts.    

USD-INR outlook:

Failure to float above 82.70 after a false penetration and quick breach of 82.45 has now turned the trend on its head, exposing 82.25 or even 81.55 again. That being the default scenario, we expect upswings early today, as long as 82.25 holds, aiming 82.40, followed by renewed selling pressure. Direct rise above over 82.4 could render the trend sideways to positive.

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