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Views On Morning Nifty and Derivative comments 26 May 2023 by Anand James - Chief Market Strategist at Geojit Financial Services

Nifty outlook:  

As expected, the consolidation in the 18240-200 region proved enough to stage an upswing, retaining the 18660 view that we had set out with, at the start of the week. Hurdles are plenty though, but a 4hr candle’s close above 18360 could give enough encouragement towards the same. Alternatively, inability to float above 18270 would render the trend sideways again.  

Derivative:

Nifty weekly contract has highest open interest at 18400 for Calls and 18300 for Puts while monthly contracts have highest open interest at 18400 for Calls and 18300 for Puts. Highest new OI addition was seen at 18400 for Calls and 18300 for Puts in weekly and at 18400 for Calls and 18300 for Puts in monthly contracts. FIIs increased their future index long position holdings by 10.16%, increased future index shorts by 2.06% and in index options by - 10.95% in Call longs, 2.08% in Call short, -16.18% in Put longs and 3.17% in Put shorts.

USD-INR outlook:

The bulls have regrouped, having defended 82.55. However, upswings are yet to unfold. Expect sideways trend initially, but inability to float above 82.70 would have to be taken as indication towards revisit of 82.55 or even 82.45. 

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