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Market Roundup

* The Indian rupee is expected to open slightly lower amid a recovery in the US dollar and a mixed trend in Asian currencies.

* The US dollar held its ground early Thursday following a turbulent two days that saw strong drops followed by a rebound as traders interpreted incoming economic data as signaling the Federal Reserve will wait longer before slashing interest rates.

* The blowout in India’s trade deficit in October is unlikely to fuel rupee weakness. The jump in imports, driven by stronger festive demand for gold and other goods, suggests the economy is recovering faster than we thought.

* Gold imports jumped to $7.2 billion from $4.1 billion in September as traders stocked up on the metal ahead of November’s festive buying. Crude oil imports rose to $17.7 billion from $14.0 billion in September. Imports of other goods surged to $40.1 billion from $35.7 billion.

* Shares in Asia were mostly down alongside US equity futures, while Treasury yields were steady after Wednesday’s selloff as investors gauged fresh signs of resilience in the US economy.

* Investors will keep an eye on the US weekly Initial Jobless Claims report, which will be released later on Thursday. Meanwhile, the Indian rupee will continue trade in the broader range of 83.05 to 83.35

USDINR

Technical Observations:

USDINR Nov fut. consolidated in upper end range.

The pair has been placed below the short-term moving average of 21 day.

Momentum Oscillator, RSI of 14 days period is placed below 50 and weakening on the daily chart.

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

Long unwinding has been seen as price along with open interest fell.

Short Term Trend: Range bound

Expected Trading Range: 83.01 to 83.35

Intraday Recommendation: Buy USDINR Nov. Fut. at 83.12 SL 83.01 Target 83.29

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