Forex and global equities
* Rupee further depreciated and moved above 75 levels which had the sizeable Put base before it moved below these levels. Rising Covid-19 cases and rise in the crude oil prices were the main reason for the depreciation.
* The Dollar index continue to remain near 97 levels with almost no sign of clear direction. Coronavirus pandemic and impact on economy dominate sentiment. Traders would wait for the EIA’s weekly report which is lined up later.
* The Nifty snapped its five-day winning streak and ended with a loss of around 94 points. In the last one hour, intense selling was seen in industry heavyweights, which led the index to drift lower to 10700. If the Nifty is unable to hold 10600, which holds significant OI , then more downside can be seen in coming days.
* Despite starting the day on a positive note, Call writers of 23000 strike dominated the second half of the day and dragged the Bank Nifty lower. From the option front, aggressive additions were seen in 23000 strike. These levels should be strong resistance on the upsides.
* Foreign institutional investors (FII) were net seller to the tune of | 1630 crore on July 04, 2020. They sold | 1665 crore in the equity market and bought | 35 crore in the debt market. FIIs have bought close to | 595 crore in the July series as of now.
INR futures and Outlook
Currency futures on NSE
* Rise in crude oil prices and covid-19 cases depreciated INR by almost 9 paise. Dollar index is flat near 97 levels and we feel on the back of clarity, INR would consolidate near 75 levels in coming days.
* The dollar-rupee contract on the NSE was at 75.19 in the last session. The open interest rose by almost 0.2% in the last session.
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