Published on 13/07/2020 12:24:31 PM | Source: ICICI Direct

The rupee depreciated further and moved to 75.40 levels - ICICI Direct

Posted in Currency Report| #Currency Tips #ICICI Direct

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Forex and global equities

Spot Currency

* The rupee slipped 21 paise and ended at 75.20 last Friday as the Dollar index showed signs of support near 96 levels. Rising Covid–19 cases also led to mounting fears among investors who seemed to be moving away from riskier assets

* As US stocks rose, the Dollar index dipped marginally. Risk sentiment remains strong despite the lingering Coronavirus concerns. The focus this week will be on the US earnings seasons along with US inflation and retail sales data

Global Bonds

* Despite all intraday volatility, the Nifty continued to remain firm well above 10700. RIL, Sun Pharmaceuticals and HUL supported the up move. However, broader market breadth remained negative. OI buildup was seen in 10600 Put and 10900 Call strikes. This should be the trading range for the week

* The Bank Nifty consolidated in the first half with stock specific action. However, underperformance was clearly seen in PSU and midcaps banks

FII Activity

* Foreign institutional investors (FII) were net buyers to the tune of | 1212 crore on July 9, 2020. They bought | 2726 crore in the equity market and sold | 1514 crore in the debt market. FIIs have bought close to | 3437 crore in the July series as of now


INR futures and Outlook

Currency futures on NSE

* The rupee depreciated further and moved to 75.40 levels. However, we continue to feel that consolidation can be seen in the rupee with 75.5 levels acting as a hurdle

* The dollar-rupee contract on the NSE was at 75.38 in the last session. The open interest declined 6.6% in the last session


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