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Daily Snapshot

* The rupee continued to appreciate on the back of choppy crude oil prices and buying in equities from lower levels

* The Dollar index moved to a fresh one week low as it failed to surpass its three month’s high. Dovish comments from Fed and worsening of the pandemic in the US may lead to tighter restrictions.

* The Nifty witnessed a volatile day where after facing selling pressure it tried to recover from lower levels during the second half of the day. Looking at option data, we expect the Nifty to face resistance at 15800 and 15900 levels as healthy Call OI continue to hold while on the downside 15500 would act as immediate support

* On Wednesday, the Bank Nifty was under selling pressure as it closed with a loss of more than 0.74%. Both private as well as PSU banks witnessed selling pressure.

* Foreign institutional investors (FII) turned net seller to the tune of | 816 crore on July 27. They sold worth | 558 crore in the equity market and worth | 258 crore in the debt market

Rupee Outlook and Strategy

* The US$INR faced a hurdle at higher levels as new contract started, OTM Call writing are increasing. We feel a leg towards 74.2 levels should be seen in coming days

* The dollar-rupee August contract on the NSE was at | 74.62 in the last session. The open interest rose almost 34% for the August series

US$INR Strategy

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