The Nifty remained muted as it closed with a gain of just 0.25% - ICICI Direct
Daily Snapshot
* The rupee strengthened for a fourth straight session on Thursday, closing 2 paise higher at 74.16 amid a rally in equities
* The dollar index paused in the last session, a day after reverting from its support level of 91.8 and 92.0 on the back of hawkish comments by a top Federal Reserve official. Currently, market participants await new direction from Friday’s US jobs report
* On Thursday, the Nifty remained muted as it closed with a gain of just 0.25%. Broader markets continued to witness profit booking as the advance/decline ratio was in favour of bears. Looking at option data, the Nifty is likely to remain in range as 16300 Call and Put options hold significant OI
* The Bank Nifty witnessed profit booking from higher levels as it closed with a loss of 0.39%. In banking stocks, select banks like HDFC Bank, Kotak Mahindra Bank witnessed buying while rest witnessed profit booking
* Foreign institutional investors (FII) turned net buyer to the tune of | 3610 crore on August 4. They bought worth | 3466 crore in the equity market and bought worth | 144 crore in the debt market.
Rupee Outlook and Strategy
* Ahead of RBI’s monetary policy, the rupees remained subdued. However, looking at additions in ATM Call and Put strikes of US$INR, it suggests the rupee is likely to consolidate below 74.5 levels
* The dollar-rupee August contract on the NSE was at | 74.29 in the last session. The open interest remained unchanged in the August series
US$INR Strategy
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