IGI Logo

Rupee Likely To Open Lower On Risk-off Moods - HDFC Securities 

Indian rupee expected to open with minor gains as risk sentiments improve with rebound in stocks. The one month forward USDINR last quoted at 73.25 6 paise lower from Thursday’s 5pm (IST) price, suggesting lower opening at domestic bourses

Asian stocks looked set to follow their U.S. peers higher today as moves to limit retail trader speculation led to gains in stocks that hedge funds had been forced to abandon. Elsewhere, Oil declined the most in nearly a week with the spread of new Covid-19 variants and tighter lockdown measures weighing on nascent hopes of a demand recovery.

On Thursday, Indian rupee declines by the most in more than a week amid outflows from the nation’s stocks and bonds. Spot USDINR ended at 73.04 with gains of 12 paise. Rupee expected to trade sideway ahead of Union Budget on February 1 and RBI’s rate decision on February 5. Technically, spot USDINR is having resistance around 73.50 and support at 72.70.

Foreign Direct Investment (FDI) in India for the month of November 2020 grew by a whopping 81 per cent to $10.15 billion against $5.6 billion in November 2019. FDI equity has also jumped to $8.5 billion as against $2.8 billion in November 2019, registering a growth of 70 per cent as per the data released by Commerce Ministry.

The dollar dropped from a five-week high after solid earnings reports and economic data helped lift U.S. stocks from their worst loss since October. The U.S. economy grew 4%, versus consensus for a 4.2% pace and way below the post-lockdown surge of 33.4% in the prior period.

In the battle against Covid-19, U.S. President Joe Biden is personally reaching out to Republican lawmakers to clear the $1.9 trillion stimulus plan.

USDINR

USDINR February futures formed higher high on hourly chart, the first sign of reversal. Now, it has to form higher low to confirm the reversal.

On daily chart, it has formed doji candlestick pattern suggesting indecisiveness at lower level.

Momentum oscillators and indicators still remain weak on daily and weakly chart indicating continuation of down trend.

We expect USDINR Feb. fut. expected to consolidate in the range of 73.15 to 73.40 in today’s trade with negative bias.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795

SEBI Registration number is INZ000171337

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer