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Nifty Outlook

Rejection trades surfaced from 24400 on expected lines yesterday, but with not enough further signs for bears to re take control. We will open the day retaining near term objectives of 24720-800, but needing consistent trades above 24350 to find momentum. Alternatively, slippage past 24260 could nullify the upside momentum, though we would need a repeat attack on the 24160-130 region to switch sides towards a 23760 move.

Comments:

Nifty weekly contract has highest open interest at 24350 for Calls and 24300 for Puts while monthly contracts have highest open interest at 25000 for Calls and 23500 for Puts. Highest new OI addition was seen at 24350 for Calls and 24300 for Puts in weekly and at 24800 for Calls and 24300 for Puts in monthly contracts. FIIs decrease their future index long position holdings by 6.04%, increased future index shorts by 3.79% and in index options by 38.76% decrease in Call longs, 34.28% decrease in Call short, 26.12% decrease in Put longs and 7.81% decrease in Put shorts.

Headlines

* US Rate Watch: The dollar dropped on Thursday, with the dollar index falling 0.49% to 104.45. This decline followed data showing headline consumer prices unexpectedly fell in June. A sharp gain in the Japanese yen, which rose more than 2% at one point after hitting a 38-year low against the dollar last week, sparked speculation of possible intervention in the currency.

* India Rate Watch: The rupee settled 5 paise lower at 83.56 against the U.S. dollar yesterday, weighed down by weak domestic markets and a recovery in crude oil prices. The rupee opened at 83.49 but touched an intraday low of 83.59 during the session.

* In Other News : U.S. consumer prices fell in June for the first time in four years, driven by cheaper gasoline and moderating rents, suggesting disinflation is on track. This development brings the Federal Reserve closer to potentially cutting interest rates in September. The Labor Department's report indicated a second consecutive month of benign consumer price readings, bolstering confidence that inflation is cooling

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