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Views On Morning Nifty and Derivative comments 22 May 2023 by Anand James - Chief Market Strategist at Geojit Financial Services

Nifty outlook:  

Friday’s bounce off 18060, the consolidation support formed in the early part of May, hints that bulls are attempting to regroup, after a 2% drop from the top. Further, the reclaiming of 18200 on Friday points towards a confidence that keeps the 18660 view intact. However, if 18270 appears too stiff an obstacle, expect 17970 before regrouping.

Derivative:

Nifty weekly contract has highest open interest at 18200 for Calls and 18200 for Puts while monthly contracts have highest open interest at 18200 for Calls and 18200 for Puts. Highest new OI addition was seen at 18450 for Calls and 18000 for Puts in weekly and at 18450 for Calls and 18000 for Puts in monthly contracts. FIIs increased their future index long position holdings by -2.18%, increased future index shorts by 3.53% and in index options by 6.28% in Call longs, 11.41% in Call short, 18.20% in Put longs and 27.26% in Put shorts.

USD-INR outlook:

Momentum has favoured the trend so far, not having to deal with either previous congestion peaks or exhaustion. Towards this end, 83-83.25 is in sight, but a swing back below 82.70 could signal consolidation having come up a long way from 81.6 vicinity seen in the early part of May.  

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