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World Markets
September 19, 2022
World Markets at a Glance for currency, equity, commodities, bonds, crypto currency, financial news & major economic events of September 19, 2022.
FX Insights
Indian Rupee
The Indian rupee was expected to open marginally higher after the Reserve Bank of India pledged to phase in rate hikes to combat stubbornly high inflation, but risk aversion in broader markets was likely to limit any significant advance.
The rupee is expected to open at 79.70, slightly higher than the previous session’s 79.74. Last week, the local currency rose to near the 79 level before reverting to the middle of its recent trading range.
Technical Analysis
The current level is 79.66.
In the daily chart, first support is placed at 79.40 ( 50 day moving average and lower Bollinger band). The break of 79.40 will take the pair towards 79.15 ( Last weeks low).
The First Resistance is at 79.90, which is previous high. If it breaks 79.90, then we can see 80.02, which is upper bollinger band.
In technical indicators, RSI is at 51.46 and is flat.
MACD is now narrow and is flat.
Other currency
On Monday, the dollar edged up to 143.08 yen, retreating from a recent 24-year high of 144.99 in the face of increasingly strident intervention warnings from Japanese policymakers.
The euro was trading at $1.1009, having risen from a recent low of $0.9865 as a result of the European Central Bank’s increasingly hawkish comments.
The dollar was steady against a basket of currencies at 109.68, just off a two-decade high of 110.79 earlier this month.
Equity Insights
Indian Equity
The market is expected to open in the green, with the SGX Nifty indicating a positive start for India’s broader index with a gain of 43 points.
At the close on Friday, the BSE Sensex fell nearly 1,100 points to 58,841, while the Nifty50 fell nearly 350 points to 17,531 and formed a bearish candlestick pattern on the daily charts. If we look at the last three days of trading, we can see that a Dark Cloud Cover pattern formed, indicating that the market is still bearish.
According to the pivot charts, the Nifty’s key support level is 17,412, followed by 17,293. If the index continues to rise, the key resistance levels to watch are 17,735 and 17,939.
According to preliminary NSE data, foreign institutional investors (FIIs) net sold shares worth Rs 3,260.05 crore on September 16, while domestic institutional investors (DIIs) net sold shares worth Rs 36.57 crore.
Other Equity
On Monday, Asian stock markets were closed as investors prepared for a week filled with 13 central bank meetings, all of which are expected to raise borrowing costs around the world, with the possibility of a large hike in the United States.
Markets have already fully priced in a 75 basis point increase from the Fed, with futures showing an 18% chance of a full percentage point increase.
Early Monday, holidays in Japan and the United Kingdom slowed trading, and the S&P 500 futures were up 0.1%, while the Nasdaq futures were flat.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.1% after falling nearly 3% the previous week.
The Nikkei in Japan was closed, but futures implied an index of 27,335 compared to Friday’s close of 27567
Commodity Insights
Oil
Oil prices rose in early Asian trade on Monday, as a weaker dollar and supply concerns ahead of the European Union’s embargo on Russian oil in December offset concerns about a global recession dampening fuel demand.
Brent crude futures rose $1.15, or 1.3%, to $92.50 per barrel after settling up 0.5% the previous day. West Texas Intermediate crude in the United States was trading at $86.16 per barrel, up $1.05, or 1.2%.
Gold
Gold prices recovered slightly from recent losses on Monday, but remained below key levels as markets awaited further Federal Reserve policy tightening measures.
Spot gold had risen 0.2% to $1,678.51 per ounce, while gold futures had risen 0.2% to $1,687.30 per ounce
Bullion prices fell to two-and-a-half year lows last week after red-hot US inflation data indicated that the Fed was likely to tighten rates by a large margin during a meeting this week, and likely for the rest of the year.
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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