IGI Logo

Views On Morning Nifty and Derivative comments 31 May 2023 by Anand James - Chief Market Strategist at Geojit Financial Services

Nifty outlook:  

The full achievement of the 18660 objective quickly prompted a pull back, but the patterns formed thereof do not appear to signal a full blown correction. At Least Not yet. This encourages us to stick with the 19070 trajectory. Minor pull back events are still possible, but they are less likely to be meaningful at least until either 18750 or 18888 is seen. For now, we will have 18575 as the downside marker, with 18530-18430 seen as near side supports.

Derivative:

Nifty weekly contract has highest open interest at 18800 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 18850 for Calls and 18600 for Puts in weekly and at 19500 for Calls and 18600 for Puts in monthly contracts. FIIs increased their future index long position holdings by 4.59%, increased future index shorts by 2.17% and in index options by -3.41% in Call longs, -6.34% in Call short, -11.21% in Put longs and -3.78% in Put shorts.

USD-INR outlook:

The stickiness to 82.7 yesterday points to upside bias, without signalling the presence of momentum required for a proper breakout. We will hunt for signs of the same, with eyes on 82.84, as long as 82.65 holds downsides.   

Above views are of the author and not of the website kindly read disclaimer