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Market Roundup:

* The Indian rupee could open flat to positive following regional peers. The lower crude oil prices and risk-off sentiments will be a perfect case for further consolidation around 82. On Thursday, spot USDINR fell 8 paise 82.16, snapping three days of gains amid a weaker dollar index. Technically, the pair is expected to trade within the range of 81.80 to 82.50. In the near term, the pair has strong resistance at 82.30 and support at 81.90

* A gauge of the dollar is set for its first weekly gain in more than a month as rising tensions between US and China dampened risk sentiment. As per the media report, President Joe Biden aims to sign an executive order in the coming weeks that will limit investment in key parts of China’s economy by American businesses. The policy-sensitive US two-year Treasury yield fell two basis points to 4.13% after declining 10 basis points on Thursday.

* The yen was the biggest gainer among its Group-of-10 peers on Friday as leveraged funds bought the currency taking a risk-off view into the weekend.

* Asian equities dropped after technology stocks led Wall Street lower, with risk appetite worn out as data showed a softening in US manufacturing and its labour market.

* WTI settled near $77, wiping out most of the gains from OPEC+'s supply cut. A technical correction known as gap fill accelerated the price drop. The US could begin to refill its Strategic Petroleum Reserve as soon as the third quarter.

* Recurring US unemployment benefit claims jumped to the highest level since November 2021, indicating some softening in the labour market. The Philadelphia Fed Index cratered to -31.3, well below estimates of -19.3. In addition, sales of previously owned homes fell in March by more than forecast, underscoring a housing market that’s still on shaky footing despite some signs of stabilizing.

* Fed Bank of Cleveland President Loretta Mester signalled support for another rate hike to quell inflation while flagging the need to watch recent bank stress that could crimp credit and dampen the economy

Technical Observations:

* USDINR April future reversed the previous day’s gain and back below 21 DEMA. However, it manages to hold the support of 10 DEMA.

* In the last four days, we have been seeing higher highs and lows. As long as the pair holds the previous day’s low one should remain on the buying side

* Momentum Oscillator, RSI of 14 days period is placed below 50.

* MACD has been placed below a zero line and flattening.

* Long unwinding has been seen as price and open interest decline.

* The pair has support at 81.90 and resistance at 82.60.

* The pair could give an upward breakout to descending trendline resistance at 82.30.

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