Market Commentary:
- INR opens weaker at 72.45 at 5-weeks low. Intraday range likely to be 72.10-73.00+ with heighten volatility high
anticipated. - Yesterday under a shocking move, RBI Governor Urjit Patel stepped down form his position with immediate effect and overseas investor could reduce investment in equity and bonds and await new governor and this policies.
- U.K PM May Theresa has postponed the Brexit vote scheduled to happen today. Next vote likely to take place end of Jan’19. GBP fell to 20-month low around p.post to the news.
- French President Macron has announced economic emergency after seeing 4 weeks of massive protects against his economic policies. No major reaction was seen in EURUSD, but possibility is building that coming future price may see 1.11-1.12 levels.
- Crude outlooks remain negative and as a result, trade deficit could reduce to 10-12 bn by March end.
Technical Corner & strategy for the day:
- USDINR at current levels looks quit bullish with strong possibility of 73.00-73.25. If today price find success closing above 73.00(strong support), then coming days possibility will be of 73.50-73.70. Hence exporters may consider waiting for better levels while importers may cover near term payment on major down tick around 72.20-72.30.
- GBPINR yesterday tested near to 92 and with strong resistance around 91.80-92.00 possibility of 92+ looks thin.
- EURINR looks to be mixed at current levels of 82.37. If price finds support around 82.30-82.40 then we may see 82.80-82.90.
Important Economic Data and Events (11.12.2018 to 14.12.2018):
- December 11: India’s 5-state election outcome
- December 11: Britain parliament vote on Brexit
- December 12: U.S & India’s inflation(CPI) for Nov’18
- December 13: ECB press conference
- December 14: India’s trade deficit & IIP for Nov’18; Rbi board meeting
Yesterday’s Market Recap:
- INR yesterday closed unchanged at 71.34 after trading mixed between 71.23-71.44 for major part of the day acting cautioned ahead of major election outcome.
- The benchmark NSE cracked over 205 points on as investors turned jittery over exit poll results ahead of outcome of state elections.
Market Movements & Performance:
