World Markets

FX Insights

USD/INR Spot reference {77.55}:

Yesterday, USD/INR had a gap up opening at 77.70 against the previous day close of 77.5400. After opening we saw exporters covering and the pair came down slowly by 10 paisa. Buying interest in fixing again tried to push the pair a little higher however sharp rise in EUR/USD dragged the pair lower in the afternoon session. Throughout the day the pair was trading with appreciative bias and finally closed near day low at 77.50 areas.

Broad Market Snapshot:

Yesterday, Dow Jones closed higher by 1.98% % after several straight weeks of declines. There is plenty of economic data due to be released across the week, which will provide further clues as to how the US economy is holding up and what the FED is planning to do. The minutes from the latest FED meeting and US GDP data will be under the spotlight, although the key data point will be the US Core PCE index, the FED’s preferred gauge of inflation, on Friday. A drop in PCE could help the market on an upward trajectory. Quarterly earnings results from the US retail sector are also due this week.

EUR/USD has rebounded back in impressive style and is trading at 1.0671. The dollar has fallen out of favor as fears of a US recession are weighing on sentiment towards the dollar. US yields were above the lofty 3% threshold just two weeks ago, but nervous investors have snapped up US Treasury bonds, sending yields lower. In turn, the US dollar has also retreated.

USD/INR Price Action and Technical:

Short-term support at 77.4950 has a chance to hold for a recovery towards 77.6500, but a dip below 77.4950 would be taken as a sign of weakness that could bring the price down towards 77.4050 and 77.2775. Below 77.40 levels the daily chart turns more bearish. A negative turn in the oscillators shows that the uptrend is slowing down. There are two nearby resistances at 77.6500 and 77.8050. Some catalyst would be needed to drive the price above 77.8050 to trigger the up move. The next strong resistance level would be around 77.98 areas.

Range for the day: 77.4050 to 77.7450

Equity Insights

Indian Equity

The market is predicted, to begin with, a flat opening, according to SGX Nifty trend. SGX nifty is trading around 16,180. Expected to open 10 points higher.

The BSE Sensex declined 38 points to 54,289, while the Nifty50 lost 200 points from the day’s high and closed at 16,215, down 51 points, forming a bearish candle on the daily charts. The failure of holding 16,400 levels indicated that the market could remain range bound in the coming days, experts feel.

The pivot charts show that the Nifty’s important support level is 16,000, followed by 15,905. The major resistance levels to monitor if the index rises are 16,365 and 16,550.

Other Equity

Asian equities got off to a slow start on Tuesday after a Wall Street surge was shattered by an early dip in US stock futures.

Nasdaq futures fell 1.3 percent after closing Monday higher, with traders blaming the earnings warning from Snap, which saw shares in the Snapchat owner fall 28 percent. 

Snap is the first of the main internet applications to disclose, which might throw a pall over Meta Platforms, which owns Facebook, and Twitter, which report next week.

S&P 500 futures fell 0.6 percent, giving up part of Monday’s 1.8 percent gain.

As a consequence, MSCI’s broadest index of Asia-Pacific stocks outside of Japan was practically unchanged, while Japan’s stock market was almost flat dipping 0.51%

Commodity Insights

OIL

Oil declined on signals that the European Union is failing to agree on a Russian import embargo, while gasoline slipped from its recent high.

After finishing Monday’s session barely altered, West Texas Intermediate fell below $110 per barrel in early Asian trade. According to those familiar with the situation, the 27-nation bloc is unlikely to ratify the ban when leaders meet next week since Hungary opposes it. Nonetheless, German Economy Minister Robert Habeck stated that the prohibition will be lifted “within days.”

Oil markets are still in backwardation, a bullish trend in which short-term prices outperform longer-term prices. Brent’s prompt spread, which is the difference between its two closest futures, was $2.55 a barrel, up from $2.08 a week earlier.

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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/