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Published on 20/10/2020 11:12:15 AM | Source: ICICI Direct

The dollar-rupee October contract on the NSE closed near 73.38 in the last session. - ICICI Direct

Posted in Commodities Reports| #Currency Tips #ICICI Direct

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Daily Snapshot

INR Futures

* Despite the sharp rally seen in the equity market, the rupee ended almost flat on Monday. It fell only 2 paisa against the US dollar. However, from the high it appreciated and managed to recover some losses

* Ahead of Fed Chair Jerome Powell’s speech, the dollar index turned negative and ended near 93.60 levels. Rising Covid-19 cases and political triggers would provide cushion to risk appetite assets

Global Bonds

* The Nifty rallied over 100 points and settled above 11850. Sectorally, action was seen in BFSI and energy stocks while profit taking was seen in pharma and auto stocks

* The Bank Nifty opened higher and held firm above 24000. In the final hours, a sudden surge in leading private banks helped the Bank Nifty to end near its day’s high. Looking at the options data, this current recovery may extend up to 25000 levels as it holds maximum Call OI. However, on downsides, 24000 and 23700 will act as support

FII & FPI Activities

* Foreign institutional investors (FII) were net buyer to the tune of | 1193 crore on October 16, 2020. They sold worth | 9 crore in the equity market and bought worth | 1202 crore in the debt market

Rupee Outlook and Strategy

* The dollar index is likely to remain volatile due to election and Fed’s speech, which would provide some trigger to EM currencies. However, writing activity in 73.5 strike Call are likely to keep pair move in check

* The dollar-rupee October contract on the NSE closed near 73.38 in the last session. The open interest fell 2.8% in the last session

 

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