Foreign Fund Inflows To Support Rupee - HDFC Securities
Indian rupee expected to open steady but as the domestic equity markets goes forex market will react accordingly. Rupee is relatively stable versus other Asian currencies on expected dollar inflows in primary market.
Technically, spot USDINR is still in down trend but oscillators are oversold so one can expect short covering bounce. The pair is having support at 73.20 and resistance 73.85.
Rupee, after rising to an intra-day high of 73.26 per dollar, closed at 73.3775 a dollar, compared with 73.4450 a dollar on Friday. Rupee remained in range through the day in absence of the fresh cues. However, late hour selling in equities dragged rupee lower on derivative platform.
Asian stocks are set to open weaker on Tuesday after U.S. equities ended lower on concerns over prospects for economic stimulus and increasing coronavirus cases. However, late recovery in wall street could restrict the loss after weak opening.
Across the board whether it is stock, commodities or currencies all were sold off on Monday as concerns over renewed lockdown measures in Europe and Britain, as well as the United States' inability to agree on fiscal stimulus that would support millions of unemployed.
Seven members of the Fed will speak this week, including Chairman Jerome Powell appearing before congressional committees, and investors will be looking for hints to determine the dollar's direction.
USDINR September Futures on daily chart formed Doji candle with bigger lower shadow suggesting short covering.
On Hourly Chart, the pair closed above middle line of the Bollinger band suggesting some bounce while the overall trend remains range bound to down.
Momentum Oscillator, RSI of 14 days period placed around 41 suggesting consolidation.
The formation of lower top lower bottom indicates weaker trend.
The pair is having support at 73.25 and resistance at 73.90.
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