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

The rupee closed almost flat while no major OI was seen in the US$INR pair - ICICI Direct

Posted in Currency Report| #Currency Tips #ICICI Direct

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Forex and global equities

Spot Currency

* The rupee opened 8 paise higher on the back of gains in domestic equities. For a fourth day in a row, the rupee remained under pressure against the US dollar

* The Dollar index finally gave up 97 levels and moved below 96.5 in the previous session. Risk-on sentiment continues to rule the global mood whereas US initial claims came in at 1,314 million during last week due to which the dollar fell

Global Bonds

* For a major part of the day, the index consolidated with 10750 acting as a midpoint. Buying in banking, cement and metal led the index to end positive with a decent gain of 1.3%. On the options front, additions were seen in ATM 10800 Call and Put strike

* Outperformance was clearly visible in banking stocks, which led the Bank Nifty to test 23000. State Bank of India was the leader whereas HDFC Bank, Axis Bank and midcap banks also witnessed short covering. Once the index manages to sustain above its major Call base of 23000, a further short covering rally can be seen

FII Activity

* Foreign institutional investors (FII) were net seller to the tune of | 741 crore on July 7, 2020. They sold | 1002 crore in the equity market and bought | 261 crore in the debt market. FIIs have bought close to | 1484 crore in the July series as of now


INR futures and Outlook

Currency futures on NSE

* The rupee closed almost flat while no major OI was seen in the US$INR pair. We feel the trading range with support near 75 levels would continue

* The dollar-rupee contract on the NSE was at 75.18 in the last session. The open interest remained almost flat in the last session


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