Wednesday, 1 July 2020
Our View in a Snapshot
| NIFTY | USD/INR | |
| Expected Open | 10225 ( – 30 ) | 75.50 |
| Expected Range | 10150 – 10400 | 75.35 – 75.70 |
- Dollar holds gains before major economic data
- Asian markets set for shaky start amid mixed cues
- Oil rises after sharp drop in U.S. crude inventories
Currencies
The dollar held onto gains on Wednesday ahead of data expected to show U.S. manufacturing activity and hiring continued to recover from the economic shock caused by the coronavirus pandemic.
Ahe dollar traded at 107.99 yen in Asia on Wednesday, close to the highest in three weeks.The mood for the yen soured after Bank of Japan data showed business sentiment fell to an 11-year year low. The euro held steady at $1.1234. Sterling bought $1.2394 as it held on firmly to the previous session’s gains
Our View on USD / INR
The rupee will likely be quoted around 75.50 to a dollar in early trades.
The Rupee is likely to have resistance at 75.65 (7 DMA) and 75.73 (14 DMA) and support at 75.41 (bollinger band) and 75.34 (RBI bought last time)
Equity
Asian stocks were set for a bumpy start to the second half of the year on Wednesday as optimism about a global economic recovery from the pandemic jousted with signs in the United States the health crisis may not yet be past its peak.
Stocks futures were mixed in early Asian trade with e-mini for the S&P 500 down 0.19% while with Japan’s Nikkei 225 futures rose 0.2%. Hong Kong’s Hang Seng index futures . lost 0.42% and Australian S&P/ASX 200 futures were down 0.1%. MSCI’s gauge of stocks across the globe gained 1.04% as the S&P 500 gained 1.54%.
Our View on Stock Market
The Indian stock market is expected to open negative around 30 to 40 points from yesterday close.
The Nifty futures are likely to open around 10,225.
The likely range for the day is 10,150 – 10,400
OIL
Oil prices rose on Wednesday after an industry report showed crude inventories in the United States fell much more than expected, suggesting demand is improving even as the coronavirus outbreak spreads around the world.
Brent crude rose 33 cents, or 0.8%, to $41.60 a barrel after declining more than 1% on Tuesday. U.S. crude was up 42 cents, or 1.1%, at $39.69 a barrel, having dropped by 1.1% in the previous session.
Source : Reuters