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Daily Snapshot

* The rupee traded flat in the first half. However, it depreciated almost 13 paise in the second half and ended near 74.75 levels

* The dollar on Monday posted moderate gains on weakness in EUR/US$ and strength in US$/JPY. EUR/US$ fell after ECB President Lagarde signalled the ECB may begin fresh stimulus measures next year after its PEPP program expires

* The Nifty opened higher but faced resistance from 15800 Call writers as it closed almost flat. Broader market witnessed healthy buying as advance/ decline ratio was in favour of bulls. Looking at options data, aggressive Call writing was seen at higher strikes especially at 15800 and 15900, which should act as immediate resistance zone

* The Bank Nifty opened higher and despite selling pressure managed to close with a gain of more than 0.12%

* Foreign institutional investors (FII) turned net sellers to the tune of | 923 crore on July 9. They sold worth | 1004 crore in the equity market and bought worth | 81 crore in the debt market.

Rupee Outlook and Strategy

* The US$INR pair is struggling marginally below its sizeable Call base of 75. Looking at the Call OI addition, we feel a move towards 74.5 is due

* The dollar-rupee July contract on the NSE was at | 74.75 in the last session. The open interest remained flat for the July series

US$INR Strategy

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