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Below On Morning Nifty and Derivative comments 28 August 2023 by Anand James - Chief Market Strategist at Geojit Financial Services

Nifty outlook: 

The prospects of 19060-18900 or even 18600-18300, as the downside objectives, were reconfirmed on Friday, with a weekly close below the 50 SMA. But as hoped, the 19250 did attract upside attempts, despite appearing weak. This presents chances of late recovery in a trend that is on a slippery slope. Upside hopes rest on the ability of 19170, the 61.8% retracement of the uptrend since June to let bulls regroup. Intermediate support is seen at 18824, the 38% retracement of larger upmove since March. VIX continue to be benign at 12.08, and below the level we saw when similar lows in Nifty was attempted last week. In other words, though 50% of Nifty 50 have slipped below the 20 SMA, fear factor is still not high enough to warrant a full blown collapse. - Read more

Derivative:

Nifty weekly contract has highest open interest at 19500 for Calls and 19000 for Puts while monthly contracts have highest open interest at 19500 for Calls and 19000 for Puts. Highest new OI addition was seen at 19300 for Calls and 19100 for Puts in weekly and at 19300 for Calls and 19100 for Puts in monthly contracts. FIIs increased their future index long position holdings by 0.00%, increased future index shorts by 13.98% and in index options by 40.47% in Call longs, 31.16% in Call short, 64.90% in Put longs and 48.03% in Put shorts. - Read more

USD-INR Outlook:

The rejection trades, following unsuccessful attempts to push much beyond the record peak, has swung prices lower, but with 82.45 arresting the declines so far. This region is expected to pivot USDINR for a while, before setting 82.2-82.7 as the likely breakout region again. - Read more

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