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Market Roundup

The rupee appreciated 2 paise to settle at 82.89 against the US dollar on Monday, tracking cues from a weak US dollar and positive equity market sentiment. However, volatile crude oil prices and foreign fund outflows weighed on the Indian currency

In the local equity market, the Sensex reached a record high of 73,872.29. It increased by 0.09 percent. While the Nifty closed at a record 22,405.60, up 0.12%

Foreign institutional investors were net sellers in the capital markets on Monday as they offloaded shares worth Rs 564.06 crore, according to exchange data.

The dollar index was largely steady near 103.8 on Monday, while most Asian currencies rose, with the Malaysian ringgit up nearly 0.5% and leading gains.

The focus will now shift to the S&P Global Services PMI for India, which is released today. In addition, Jerome Powell, the chair of the Federal Reserve, will testify on Wednesday, which could provide some clues regarding a general assessment of the state of the economy and monetary policy.

The two-year U.S. Treasury yield rose 7 basis points on Monday, and the 10- year was up 4 basis points. There were no major U.S. data releases on Monday.

The Indian rupee is expected to decline at open on Tuesday amid U.S. Treasury yields pushing higher and a firm US dollar. We anticipate that the spot rupee will trade in the range of 82.85 to 83.05 in the short term.

Technical Observations:

USDINR March futures traded within the range of 82.80 to 83.05.

The pair is closed below the shortterm moving average of 21 days.

Momentum Oscillator, RSI of 14 days period is almost flat and is placed above 30 on the daily chart.

MACD has been placed below a zero line with a flattish note.

Short buildup has been seen as price fell while open interest rose.

Short Term Trend: Bearish

Expected Trading Range: 83.05 to 82.80

Intraday Recommendation: Sell USDINR Mar. Fut. at 82.99 SL 83.09 Target 82.80

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