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Published on 22/07/2020 10:51:45 AM | Source: ICICI Direct

The open interest fell 4.6% in the last session - ICICI Direct

Posted in Currency Report| #Currency Tips #ICICI Direct

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Forex and global equities

Spot Currency

* The optimism continued for the currency market with the rupee further appreciating by 17 paise and settling well below 75 levels. Positive domestic equities and fast progress in Covid-19 vaccine provided a sentimental boost

* The Dollar index fell close to 1% and moved towards 95 levels as risk appetite trends appears somewhat mixed on Tuesday. US Chicago Fed Activity Index climbed to 4.11 in June. As it has managed to close below 95.5 levels, we feel it could move towards its yearly low of 94.5

Global Bonds

* Nifty stocks continued their rally for a fourth consecutive session to end with strong gains. The Nifty rose 1.5% to close near its Call base of 11200, led by banking while follow-up buying was also witnessed in energy as well as auto stocks. We feel a consolidation move will take place before crossing the 11200 hurdles

* On Tuesday, the Bank Nifty relatively outperformed the Nifty. The Bank Nifty rose almost 2.5% led by gains in Kotak Mahindra Bank, HDFC Bank and State Bank of India. From the option space, additions were seen in 22500 and 22000 Put strikes

 

FII Activity

* Foreign institutional investors (FII) were net buyer to the tune of Rs. 1995 crore on July 17, 2020. They bought Rs. 1648 crore in the equity market and Rs. 348 crore in the debt market. FIIs have bought close to Rs. 4220 crore in the July series as of now

 

INR futures and Outlook

Currency futures on NSE

* The weakness in the Dollar index and positive domestic equities weigh rupee. We feel the rupee could move towards 74.5 levels but a close below this level would trigger a move towards 74

* The dollar-rupee contract on the NSE was at 74.69 in the last session. The open interest fell 4.6% in the last session

 

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