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Views On Morning Nifty and Derivative comments 25 May 2023 by Anand James - Chief Market Strategist at Geojit Financial Services

Nifty outlook:  

Bulls have loosened their grip, but bears haven't dominated yet either though. Expect 18240-200 region to allow for more attempts to swing higher, which though may need to push beyond 18330 to gain momentum. While favoured view continues to expect 18660, post a few days’ consolidation, the recent low of 18060 as well as 50DMA at 17717, are now in the radar, though an outright collapse is less favoured.  

Derivative:

Nifty weekly contract has highest open interest at 18500 for Calls and 18300 for Puts while monthly contracts have highest open interest at 19000 for Calls and 18000 for Puts. Highest new OI addition was seen at 18300 for Calls and 18300 for Puts in weekly and at 18300 for Calls and 18000 for Puts in monthly contracts. FIIs increased their future index long position holdings by 0.22%, increased future index shorts by 3.95% and in index options by 11.53% in Call longs, 2.25% in Call short, 23.03% in Put longs and -1.36% in Put shorts.  

USD-INR outlook:

The slow down in upsides that panned out in the last few days have evolved into a turn lower, especially after 82.7 gave away as feared. An outright collapse to 83.25 or lower is less expected though, with favoured view expecting a regrouping of bulls once in the 82.55 vicinity.   

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