Nifty & USD/INR Report 29th May, 2012

Daily Nifty Analysis

Nifty Analysis_29th May_xDirectIndia

The Indian markets settled on a higher note yesterday, as global markets nevertheless gave in favorable cues that aided Nifty to break
above the pivotal 4,950 mark. Even though the afternoon session there some profit booking witnessed on the counter, positive movement on the European market instilled that the Indian markets remain in the positive side. Among Industrial Sectors Banking topped the performance that prompted buying in the market, where the Benchmark SENSEX added 199 points closing the day at 16416.84, meanwhile Nifty too closing above 65 points closing in at 4985.65 points.

The resistance at 4957 has been breached, where decisively has portrayed a bullish signal in the same. The resistance at 5032 followed by 5078 could be tested in coming sessions; nevertheless for today the positive moves could be a bit subdued marking the movements flat in the same.

Supports remain at levels around 4965-4940, if holds strongly then we anticipate another bout of buying may be witnessed to close above 5000 mark

View on Indian Rupee

USD/INR_29th May_xDirectIndia

The correction in the US Dollar seemed to have come in a good time, boosting the strength on the Rupee that pulled away from its all-time low of 56.38.
The selling on the US Dollar also came on the back of renewed appetite among traders overall that started the week with pulling away from the oversell region; however we still anticipate the trends are still uncertain and therefore the trading and movement for the week would remain flat, as media-favorite Non   Farm   Payrolls   and  US employment numbers would be in store for a trend to be showcased for the near future.

 

Intra-day Outlook

Spot USDINR:
Despite a small showdown of INR appreciation has been witnessed for the past 3 session, we still keep our bias towards upside for the pair, as the support of 54.90 would be held strongly in the spot market. The supports on the interim are seen towards 55.53 (23.60% retracement from the low of 52.668 May 8th to the recent high of 56.379 on May 24th) followed by 55.05 and then 54.90 (both resistance turned support). Today the movement would be quite as traders decide on the catalyst to decide on its next trade strategies.

Report by
xDirect India
www.xdirect.in