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Market Roundup

* The Indian rupee is expected to open slightly higher following the overnight fall in the greenback after FOMC meeting output. Implied opening from forwards suggests the spot USDINR may start trading around 83.21.

* Spot USDINR gained three paise to 83.29, the all-time high the pair first reached in October last year and matched again this October. Technically, the pair has resistance at 83.30, sustainable movement above this level will pave the way for 83.50 and 83.70, while on the lowerside, 83 remains near-term support.

* Indian bonds may open higher, tracking gains in most Asian peers spurred by the Federal Reserve signalling it may now be finished with its rate hikes. 10-year yields little changed at 7.36% on Wednesday.

* The dollar extended a decline against its Group-of-10 peers as US yields fell after the Federal Reserve signalled its policy tightening cycle may be over. Fed Chair Jerome Powell hinted the US central bank may be done with hiking rates after it stayed on hold Wednesday. Overnight-indexed swaps signalled a roughly one-in-four chance of another rate increase by January and fully priced in a cut by June. Treasury 10-year yields fell three basis points to 4.70% on Thursday after tumbling 20 basis points the previous day.

* Shares in Asia jumped following gains in US stocks. Benchmarks in Australia, Japan and South Korea rose, while Chinese stocks also opened up, fueling gains in a regional gauge. The moves in Asia echoed a 1.1% rally in the S&P 500 Wednesday that placed the index on track for its best week since March. US equity futures edged higher in early Asian trading. Meanwhile, West Texas Intermediate, the US oil benchmark, advanced more than 1% to above $81 per barrel, retracing a Wednesday decline.

* The Bank of England is expected to hold rates for a second consecutive meeting today, as inflation concerns ease.

USDINR

Technical Observations:

* USDINR Nov fut. closed above 10 and 21 DEMA after a month.

* It has given an upward breakout to the range but facing downward slopping trendline resistance at 83.40.

* Momentum Oscillator, RSI of 14 days period is placed above 50 and improved indicating positive momentum.

* MACD has been placed at the zero line exhibiting improvement in the trend.

* Minor long buildup was seen as the price, open interest and volume gained.

* Short Term Trend: Neutral/Sideways

* Short Term Trading Range: 83.10 to 83.60

* Intraday Recommendation: Sell USDINR Nov. Fut. Below 83.30 SL 83.42 Target 83.15

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