World Markets

FX Insights 

USD/INR Spot reference {77.72}:

Yesterday, USD/INR had a gap up opening near the same level at 77.5500 against the previous day close of 77.5650. Initially we saw selling interest by market participants which dragged the pair to low of 77.4750 levels however buying interest by oil companies again pushed the pair higher.  In the afternoon session the pair was trading in a very range bound manner with depreciative bias and touched a high of 77.60 levels before closing at 77.58 areas.

Broad Market Snapshot:

Yesterday Dow Jones tumbled sharply lower -3.57 % after disappointing earnings report from retail sector and inflation fears. It’s a new week but the same old story for financial markets as global growth concerns and inflation fears leave global investors on edge.

GBPUSD also crashed 100 pips after UK inflation soared to 9 % in April 22 from 7 % in March 22. Surging energy bills and rising food and fuel prices driven up by the Russia/Ukraine war lifted inflation in the UK. However they are trying their best to catch up with the inflation by aggressive interest rate hike.

USD/INR Price Action and Technicals:

Very short-term charts now in overbought territory, hinting that the price would be inclined to drift down towards 77.5650. 77.65 levels is a breakdown point and staying below this support area might caution about the possibility of a slightly stronger correction in the pair towards 77.4050 again. Next immediate resistance is at 77.8050. Unexpected rise above 77.8050 could hint at the possibility of extending the rise towards next resistance around 77.9800. Negative momentums in daily chart pattern shows that the uptrend is slowing down.

Range for the day: 77.4950 to 77.8150

Equity Insights

Indian Equity

The market is expected to open gap-down, with the SGX Nifty indicating a 260-point drop for the wider index in India.

The Sensex fell 109.94 points, or 0.20 percent, to 54,208.53 on Wednesday, while the Nifty down 19 points, or 0.12 percent, to 16,240.30.

The pivot charts show that the Nifty’s main support level is15,700 followed by 15,550. The major resistance levels to monitor if the index rises are 16,100 and 16,200.

Other Equity

On Thursday, Asian markets followed Wall Street’s dramatic sell-off, as investors worried about increasing global inflation, China’s zero-COVID policy, and the Ukraine crisis, while the safe-haven dollar maintained most of its overnight gains.

In early Asian trading hours, MSCI’s broadest index of Asia-Pacific equities outside Japan lost 2%, the first daily fall in a week. The Nikkei 225 fell 2.4 percent.

Commodity Insights

OIL

Oil prices rebounded on Thursday, recouping early losses, as persisting concerns about limited global supply overcame concerns about weaker global growth, as seen by falling global stock markets.

Brent oil futures were up 97 cents, or 0.9 percent, at $110.08 a barrel, after plunging by more than $1 earlier in the session.

WTI oil futures in the United States increased 42 cents, or 0.4 percent, to $110.01 a barrel in June, recovering from an early loss of more than $2. WTI was up 56 cents, or 0.5 percent, to $107.60 per barrel in July.

On Wednesday, both benchmark prices decreased by nearly 2.5 percent.

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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/