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Views On Morning Nifty and Derivative comments 29 May 2023 by Anand James - Chief Market Strategist at Geojit Financial Services

Nifty outlook:  

We are at the doorstep of the 18660 objective, which we have been aiming for, all through last week. But, the steepness of Friday’s rise, as well as proximity to the record peak of 18887, prompt us to be guarded against potential rejection trades. We prefer to play this scenario by riding on the upside momentum early on, with downside risk markers placed at 18430 initially, to be trained to any of 18535, 18660, or 18750, as we move higher and until 18887 or 19070 is achieved.

Derivative:

Nifty weekly contract has highest open interest at 19000 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 18700 for Calls and 18400 for Puts in weekly and at 19000 for Calls and 18400 for Puts in monthly contracts. FIIs increased their future index long position holdings by 17.98%, increased future index shorts by -0.46% and in index options by 44.18% in Call longs, 51.05% in Call short, 45.15% in Put longs and 76.37% in Put shorts.

USD-INR outlook:

Inability to float above 82.70 has elevated the risk of revisit of 82.45. Breach of the same may expose 82.2. Until this holds, we may pull back into the sideways trend. Breach of the same, however, could seriously threaten the prospects of an upside breakout beyond 83.25, which has been brewing for a fortnight.  

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