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Views On Morning Nifty and Derivative comments 01 January 2023 by Anand James - Chief Market Strategist at Geojit Financial Services

We are close to the 21860 objective that we had pencilled in last week. If the bulls choose to ride on the momentum, we could stretch as far as 22400, but we feel that a turn lower or side ways move is highly likely given how pronounced the negative divergence is on the directional moving indicator, and with 3d RSI peaking. That we are about 8.5% above the 100 DMA also supports this construct, as the last time we were more than 10% above this benchmark, which was in late July 2023, a three month consolidation followed. We will use 21730 as a pivot to go with this construct this week. - Read more

Nifty weekly contract has highest open interest at 22000 for Calls and 21500 for Puts while monthly contracts have highest open interest at 22000 for Calls and 21000 for Puts. Highest new OI addition was seen at 23000 for Calls and 18300 for Puts in weekly and at 22200 for Calls and 21400 for Puts in monthly contracts. FIIs increased their future index long position holdings by 3.08%, increased future index shorts by 3.19% and in index options by 83.90% in Call longs, 58.47% in Call short, 60.52% in Put longs and 41.99% in Put shorts. - Read more