FX Market Insight
USD/INR Spot reference {77.55}:
Yesterday, USD/INR had a gap down opening at 77.5200 against the previous day close of 77.5825. After opening the pair was trading with appreciative bias and gradually came down to 77.4375 levels. In the afternoon session the pair started moving higher tacking negative sentiment in domestic equity and dollar strength globally. Throughout the day the pair swung both sides in a very narrow range, made a high of 77.5700 and finally settled near opening at 77.5250 levels.
Broad Market Snapshot:
Yesterday US Dow Jones closed higher 0.60%, after minutes from the FED’s latest monetary policy meeting showed policymakers unanimously felt the US economy was very strong without triggering a recession. Minutes of the meeting reaffirmed that FED officials saw additional 50 basis point rate hikes as appropriate over the next couple of meetings.
USD/INR Price Action and Technical:
Yesterday USD/INR made a low of 77.4375. Staying below 77.50 suggesting that the price could further fall towards 77.2750 .Immediate resistance levels are spread between 77.57 & 77.6725. Strong resistance levels in the 76.6725 region need to be cleared to extend the rally towards 77.8050 areas. Some catalyst would be needed to drive the price above 77.8050 to trigger the up move. Unexpected crossover above 77.8050 could take it higher to 77.9825.Negative turns in the oscillators suggest that the uptrend is slowing down.
Range for the day: 77.3750 to 77.6725
Equity Insights
Indian Equity
The market is set to begin in the green, with the SGX Nifty indicating a 60-point rise for the wider index in India.
The BSE Sensex dropped over 300 points to 53,749, while the Nifty50 plummeted about 100 points to 16,026 and formed a bearish candle for the third consecutive day, as the broader markets were battered by bears. The Nifty Midcap 100 and Smallcap 100 indexes, respectively, have corrected 2.5 percent and 3.5 percent.
The pivot charts show that the Nifty’s main support level is 16,000, followed by 15,900. The important resistance levels to monitor if the index rises are 16,200 and 16,400.
Other Equity
On Thursday, Asian stock markets fell as minutes from the Federal Reserve’s early May meeting revealed that a majority of members supported half-point rate rises in June and July, as well as lingering concerns about global growth.
After trading higher early in the morning, investor worry over those issues brought MSCI’s broadest index of Asia-Pacific equities outside Japan down 0.54 percent. Australian stocks fell 0.47 percent, while Japan’s Nikkei market index fell 0.13 percent, reversing previous gains. The Kospi in Seoul rose 0.25 percent after the central bank’s rate announcement met forecasts.
Commodity Insights
OIL
Oil prices increased on Thursday, continuing a cautious advance this week on signals of constrained supply, as the European Union (EU) negotiates with Hungary over plans to prohibit imports from Russia, the world’s second-largest oil supplier, following its invasion of Ukraine.
Brent crude futures for July settlement inched up 7 cents, or 0.1 percent, to $114.10 a barrel. US West Texas Intermediate (WTI) crude futures for July delivery climbed 22 cents, or 0.2 percent, to $110.55 a barrel.
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| Economic Calendar |
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| Thursday, May 26, 2022 |
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Time | Country | Event | Forecast | Previous |
02:40 | NZD | RBNZ Gov Orr Speaks |
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18:00 | USD | Initial Jobless Claims | 215K | 218K |
18:00 | CAD | Core Retail Sales (MoM) (Mar) | 2.0% | 2.1% |
18:00 | USD | GDP (QoQ) (Q1) | -1.3% | -1.4% |
19:30 | USD | Pending Home Sales (MoM) (Apr) | -2.0% | -1.2% |
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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.
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