Swastika Investmart Limited

MARKET OVERVIEW

Dollar gained 0.39 percent & closed at Rs. 61.11 in futures. The spot rate is currently at 61.07. FIIs bought securities worth net Rs. 2912.70 crores in the cash & derivatives segment of the Indian equity markets on Wednesday. Dollar Index is currently trading at 79.7680 down 0.04 percent from the previous close.

The Markit Flash U.S. Manufacturing PMI for April indicated a barely-detectable dip to 55.4 from the final March reading of 55.5.

Sales of new U.S. single-family homes tumbled to their lowest level in eight months in March. Sales dropped 14.5 percent to a seasonally adjusted annual rate of 384,000 units, declining for a second consecutive month.

Durable goods orders in US climbed by a seasonally adjusted 2.6% last month, beating expectations for a 2% gain. Core durable goods orders, excluding volatile transportation items, rose by a seasonally adjusted 2% in March, up from 0.1% in February.

The number of people seeking U.S. unemployment benefits surged 24,000 to a seasonally adjusted 329,000 last week.

OUTLOOK FOR TODAY: USD INR

We expect the rupee to trade on a neutral to positive note against the dollar taking cues from weakness in the dollar index & less positive than expected economic data from USA. However, weakness in the asian markets & corrections in the domestic market may cap sharp gains in the rupee.

Technical Outlook: As seen on the daily chart, USDINR is at the trend line resistance near 61.21. If it breaches this level on the upside then the counter is likely to head towards the 61.35 mark. 60.80 is a crucial support on the downside

CURRENCY TRACKER: 25th April 2014