News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/8G8mUX4so6 https://t.co/MAn2EL32sU
  • In the week ahead, around 25% of S&P 500 companies will release their results, including GE, Johnson & Johnson, 3M, Microsoft, Boeing, AT&T, Facebook, Apple, Tesla, Visa and Amazon. Read more on my earnings outlook report. https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/01/17/Dow-Nasdaq-SP-500-Outlook-Earnings-May-Bring-Positive-Surprises.html
  • Wall Street Futures Update: Dow Jones (+0.20%) S&P 500 (+0.28%) Nasdaq 100 (+0.51%) [delayed] -BBG
  • Nearly 80% of the S&P 500 constituents closed in the red on Friday, dragged by materials (-0.43%), financials (-0.38%) and energy (-0.34%) whereas defensive utilities (+0.20%), real estate (+0.15%) and communication services (+0.02%) outperformed. https://t.co/vf08Fhfvxd
  • Traders focus a lot of their energy on spotting the perfect time to enter a trade. While this is important, it is ultimately where traders choose to exit trades that will determine success. Learn about the three types of trading exit strategies here: https://t.co/muYkTNXH7s https://t.co/fSRW0Z8mNQ
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/reRmDe1Ksp https://t.co/RyMqsHehsY
  • RT @GunjanJS: This is pretty wild. Last year, in RECORD year for options, about 30 million contracts traded daily. This year, it’s been mo…
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCZ9dzS https://t.co/KD6mfkiCaW
  • What are some technical and fundamental factors affecting the equities market? Get your free forecast here: https://t.co/YQG1aaIT8C #DailyFXGuides https://t.co/TEoSjMpMBo
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/H9fW9ewiQd
Nifty 50 Sinks, Deeper Pullback Ahead? Indian Rupee Clears Key Support

Nifty 50 Sinks, Deeper Pullback Ahead? Indian Rupee Clears Key Support

Daniel Dubrovsky, Analyst

Indian Rupee, USD/INR, Nifty 50, Covid Vaccine, Profit Taking, Thanksgiving - Talking Points

  • Indian Rupee capitalized on weaker US Dollar, more gains ahead?
  • Nifty 50 sinks on capital outflows ahead of Thanksgiving holiday
  • USD/INR back in consolidation zone, Nifty at risk of a reversal?
Advertisement

The Indian Rupee continued to capitalize on the weaker haven-linked US Dollar seen as of late. Progress towards a Covid vaccine from Pfizer, Moderna and the AstraZeneca-Oxford team has bolstered general market sentiment. This is despite rising coronavirus cases in the United States with recent conference board consumer confidence and jobless claims data looking particularly worrying.

India’s benchmark stock index, the Nifty 50, tumbled 1.51% on Wednesday however. That was the worst day for the index in almost 6 weeks. This might have been due to some profit-taking ahead of the holiday-shortened week in the US due to Thanksgiving. It also follows strong gains in the index since early November that pushed it deeper into all-time highs.

Top Trading Lessons
Top Trading Lessons
Recommended by Daniel Dubrovsky
How can you overcome common pitfalls in FX trading?
Get My Guide

According to Bloomberg, domestic funds sold a net INR18.4 billion of stocks on Wednesday as global ones dumped about INR0.242 billion. Most of the losses were seen in financial stocks, the largest segment of the Nifty 50. Lower-than-normal levels of liquidity remain a risk in the short term with Indian third-quarter GDP on tap Friday. This risks amplifying volatility given a softer-than-expected outcome.

Indian Rupee Technical Analysis

USD/INR closed back under the former 73.89 – 74.04 resistance zone. That has exposed the key 72.76 – 73.00 support zone. Between these two technical boundaries is where the pair spent most of its time consolidating from September until late October. USD/INR also confirmed a break under short-term rising support from early October. Keep a close eye on the 50-day Simple Moving Average (SMA), which may hold a support.

Forex for Beginners
Forex for Beginners
Recommended by Daniel Dubrovsky
Learn how to become a more consistent forex trader
Get My Guide

USD/INR Daily Chart

Nifty 50 Sinks, Deeper Pullback Ahead? Indian Rupee Clears Key Support

USD/INR Chart Created in TradingView

Nifty 50 Technical Analysis

The Nifty 50 closed under a short-term rising trendline from late October. This follows the emergence of negative RSI divergence, a sign of fading upside momentum. Confirmation of the breakout would likely place the focus on the 20-day SMA which may reinstate the focus to the upside. Otherwise, extending gains places the focus on the 138.2% Fibonacci extension at 13242 followed by the 150% level at 13388.

Nifty 50 Daily Chart

Nifty 50 Sinks, Deeper Pullback Ahead? Indian Rupee Clears Key Support

Nifty 50 Chart Created in TradingView

--- Written by Daniel Dubrovsky, Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES