FX Market Insight
Broad Market Snapshot:
In May, the Indian rupee hit a new all-time low of 77.928 versus the US dollar, owing to growing investor fears about global and domestic growth and inflation. According to the most recent available statistics, this resulted in a net outflow of USD 4.6 billion from Indian stocks between the 2nd and the 25th of May, compared to a net outflow of USD 3.8 billion for the whole month of April.
Higher oil prices are beginning to influence India’s commerce, with a bigger trade imbalance of USD 20.1 billion in April, up from USD 18.5 billion in March. This trend is projected to continue in the coming year, resulting in larger current account deficits and greater depreciation of the rupee.”
If 77.50 break we can see a downside upto 77.30
Range for the day: 77.35 to 77.90
Equity Insights
Indian Equity
The Indian stock market is set to begin in the red, with trends on the SGX Nifty indicating a 100-point drop for the wider index in India.
Nifty ended the day below its opening levels, generating a bearish candle on the daily charts and lagging other indexes. The Nifty Midcap 100 index increased by 0.04 percent, while the Smallcap 100 index increased by 0.28 percent.
According to pivot charts, the Nifty’s important support level is 16,360 followed by 16,230. The major resistance levels to monitor if the index rises are 16,550 and 16,800.
Other Equity
The Asia-Pacific stock market fell on Thursday, as Australia’s April trade surplus was bigger than projected. In Japan, the Nikkei 225 index declined 0.21 percent, while the Topix index dropped 0.58 percent. The Kospi index in South Korea fell 0.97 percent.
Outside of Japan, MSCI’s broadest index of Asia-Pacific stocks fell 0.98 percent.
Commodity Insights
OIL
Oil prices have dropped $3 per barrel as investors profiteer ahead of the OPEC+ summit.
In early Asian trade on Thursday, oil prices plummeted by approximately $3 a barrel as investors profited from a recent surge, with a crucial producers gathering later in the day anticipated to pave the way for planned output increases.
Brent crude was down $2.76, or 2.4 percent, at $113.53 a barrel, after rising 0.6 percent the day before. After a 0.5 percent gain on Wednesday, US West Texas Intermediate (WTI) oil fell $2.89, or 2.9 percent, to $112.37 a barrel.
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| Economic Calendar |
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| Thursday, Jun 02, 2022 |
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Time | Country | Event | Forecast | Previous |
07:00 | AUD | Retail Sales (MoM) | 0.9% | 0.9% |
17:45 | USD | ADP Nonfarm Employment Change (May) | 300K | 247K |
18:00 | USD | Initial Jobless Claims | 210K | 210K |
20:30 | USD | Crude Oil Inventories | -1.350M | -1.019M |
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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