World Markets

World Markets

26 April  2022  

World MarketsForex Insights

USD/INR Spot reference {76.5650}:

Yesterday, USD/INR had gap up opening at 76.6100 against Friday close of 76.4825.After opening the pair initially touched 76.5800 during initial trades and from there the pair was on continuous uptrend due to negative sentiment in the equity market. Strong dollar globally and buying interest in fixing also helped the pair move higher to 76.7700 area. In the afternoon session, the pair gradually recovered and touched a low of 76.5600 before closing at 76.6900 levels.

Broad Market Snapshot:

Down Jones ended 0.70% higher and Nasdaq surged 1.29 % after Twitter agreed to be bought by billionaire Elon Musk, sparking a late day rally in growth stocks. Market participants will now focus on earnings with heavy hitters like Alphabet, Meta, Microsoft, Apple, and Amazon all scheduled to release their results between Tuesday and Thursday this week.

Oil fell sharply lower yesterday, extending weakness well below psychological USD 100 level .Oil came under increased pressure on concerns that extended COVID lockdowns in Shanghai and FED hawkish signals for stronger than expected rate hike would slow global growth and hurt oil demand globally.

 

USD/INR Price Action and Technicals:

Exaggerated trading swings have become more common nowadays, but that’s just how things have been for the last few months. Short term charts hold the hope that it is more likely to stay below 76.7700 areas and drift down towards to test 76.4650 then 76.3650 levels. Unexpected dip below 76.3650 would attract more selling towards important support near 76.2500 areas. Holding above 76.61 might lessen the chances for the expected corrective dip and retest the 76.7700 resistance again.

Range for the day:

76.3750 to 76.7700

Equity Insights

Indian Equity

The market is expected to open in the green as trends on the SGX Nifty indicate a positive opening for the broader index in India with a gain of 105 points.

The benchmark indices erased all the gains of the previous two days in the following two sessions on Friday and Monday. The BSE Sensex corrected 617 points to 56,580, while the Nifty50 plunged 218 points to 16,954 and formed yet another bearish candle on the daily charts.

As per the pivot charts, the key support level for the Nifty is placed at 16,877, followed by 16,800. If the index moves up, the key resistance levels to watch out for are 17,043 and 17,131.

Other Equity

Markets in Asia-Pacific traded mixed on Tuesday morning as investors are set to closely watch market reaction to Covid fears in China as Beijing expands mass testing.

Japan’s Nikkei 225 rose 0.17%, while the Topix was flat. South Korea’s Kospi rose 0.55%.

Australian stocks however fell as trading resumed from a holiday on Monday. The S&P/ASX 200 plummeted 2.34% in early trade.

Major miners slumped, as Rio Tinto fell more than 4%, Fortescue Metals dived 6.6% and BHP plummeted almost 6%.

MSCI’s broadest index of Asia-Pacific shares outside Japan edged down 0.19%.

Commodity Insights

OIL

Oil prices opened slightly higher on Tuesday, after falling sharply the prior session on worries that continued COVID-19 lockdowns in China would eat into demand and as the U.S. dollar rose to a two-year high.

Brent crude futures were at $102.57, up 25 cents, or 0.2% and U.S. West Texas Intermediate contracts climbed to $98.70, up 16 cents, or 0.2%.

Both contracts had settled down around 4% on Monday, with Brent down as much as $7 a barrel in the session and WTI dipping roughly $6 a barrel.

Gold

Gold Price is rising in Tokyo as the US dollar loses some of its momentum following a sharp advance at the start of the week. The gold price remains, however, near a four-week low that was printed overnight. At $1,900.21, the price is 0.11% higher. Gold has risen from a low of $1,897.42 and touched a high of $1,903.83.

Economic Events

Economic Calendar

Tuesday, Apr 26, 2022

Time

Country

Event

Forecast

Previous

18:00

USD

Core Durable Goods Orders (MoM) (Mar)

0.60%

-0.60%

19:30

USD

CB Consumer Confidence (Apr)

108

107.2

19:30

USD

New Home Sales (Mar)

765K

772K

 

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Disclaimer: All information in this report is collected from various sites on the internet. Although we have taken all precautions for the correct representation of data however we do not take any responsibility for any errors and omissions. The technical analysis and views expressed are the author’s own views. We are not responsible for any losses on account of following the same.

Sources

https://www.reuters.com/

https://in.investing.com/