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Market Round up

* The Indian rupee is expected to open slightly higher following overnight weakness in the dollar index. Implied opening for the forward suggesting USDINR opening around 82.38.

* On Wednesday, spot USDINR decline 13 paise or 0.16% to 82.48, breaking the three days rally following lower crude oil prices. Technically, the pair is having resistance at 82.90 and support at 82.10. The near-term trend remains bullish following a bullish chart formation of higher tops and bottoms

* The impact of the RBI policy decision was muted as it delivers a hike as per the expectations and kept the stance accommodative. However, it raises concern about growth while expecting inflation to come down following lower commodity prices.

* Risk sentiment was also dampened due to Russian President Vladimir Putin’s warning that the threat of nuclear war in the world is rising. The prospect of the Netherlands announcing new controls on exports of chipmaking equipment to China also weighed on risk sentiment

* Stocks in Asia fell after the S&P 500 slipped for the fifth day and Treasuries flashed warning signs of recession. The dollar strengthened as an indication of demand for havens. The dollar resumed gains after a small decline Wednesday. The offshore yuan held below the 7 levels to the greenback as investors continued to balance China easing Covid restrictions and a dimming outlook for the global economy.

* Elsewhere in markets, oil rose after a four-day drop as investors weighed the impact of China’s movesto ease virus curbs against a looming US slowdown.

USDINR

Technical Observations:

* USDINR Dec fut formed a bearish candle with a small body indicating consolidation before heading higher.

* The pair has support at 82.10, the horizontal trend line and resistance at 83.08, the November month high.

* The derivative data indicates a long buildup in the pair with a rise in the price, volumes and open interest.

* Momentum oscillator, RSI headed north and is currently placed at 60.7. It indicates positive momentum

* MACD is placed above the zero line with a positive crossover indicating a strong uptrend.

* Looking at the above technical evidence, we expect USDINR Dec fut is expected to trade in the range of 82.10 to 83.10 with positive bias.

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