IGI Logo

Market Roundup

After Monday’s flat close, the Indian rupee is expected to open slightly lower following the recovery in the greenback and risk-averse moods.

The forward market indicates USDINR could open at 81.83 at local bourses. On Monday, spot USDINR ended unchanged at 81.80. The pair has been consolidating in a narrow range with thin volumes.

The central bank’s intervention and bargain buying has been helping the pair in restricting the loss. Technically, it has support in the area of 81.70 to 81.50 and resistance at 82.30.

The dollar crept higher in early Asian trading, heading for a second day of gains. The greenback reversed earlier losses Monday after the Federal Reserve’s Senior Loan Officer Opinion Survey signalled the credit market was tightening slightly, while business loan demand was weakening.

US Treasury 2-year yields rose 9 basis points to 4%. US Treasury yields and the dollar will probably be capped ahead of Wednesday’s consumer price report.

Stocks in Asia were mixed as investors awaited trade data from China that will provide further signs on the country’s economic recovery. Futures for the S&P 500 and Nasdaq 100 both edged lower in Asia.

The S&P 500 ended Monday fractionally higher after jumping 1.9% Friday. Elsewhere in markets, oil edged lower as investors assessed a complex outlook for global demand after a period of volatile trading.

Gold was little changed and Bitcoin held below $28,000. Investors will be watching US President Joe Biden and congressional leaders as they are set to discuss the debt-ceiling issue later today.

Meanwhile, consumer-inflation data Wednesday may provide further clues on the Fed’s path and set the tone for equities.

Technical Observations:

USDINR May fut. closed below the upward-slopping trend line support.

The pair formed a bullish candle following a “Doji Candlestick” pattern indicating bulls trying to regain lost ground.

The pair has been placed well below the short-term moving average of 10 days. Momentum Oscillator, RSI of 14 days period is placed below 50 and weakening on the daily chart.

MACD line has been placed below a zero line and stayed below the moving average.

Short covering has been seen as price gained while the open interest and volume declined.

We remain bearish on USDINR May future with downside support at 81.45, keeping stop loss above 82.50

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