CRR cut to enable bullish equity, rupee market
The RBI monetary policy meeting on March 15 and the Union Budget the next day will be factors the market will keenly watch.
Updated:
By Hemal Doshi, Chief Currency Strategist, Geojit Comtrade
The USD/INR broke out from a consolidation range of 48.60-49.80 in the past one month. The breakout led prices to cross the crucial & physiological level of 50 and marking a high of 50.7525.
However, these levels could not sustain due to a reversal in global equities and overseas dollar movement. The slow stochastic indicator has approached the level of 75.57 and is seen reversing from the top, further indicating some more downward move in the making. If 49.80 is broken on a daily basis, then prices could trend lower towards 49.56 and 49.31 levels. Any upmove might find resistance around 50.03 and 50.28 levels.
The RBI monetary policy meeting on March 15 and the Union Budget the next day will be factors the market will keenly watch. Surprise reduction of CRR by 75 bps from 5.5% to 4.75% will inject Rs 48,000 crore into the system, paving way for a bullish equity and rupee market.
The USD/INR broke out from a consolidation range of 48.60-49.80 in the past one month. The breakout led prices to cross the crucial & physiological level of 50 and marking a high of 50.7525.
However, these levels could not sustain due to a reversal in global equities and overseas dollar movement. The slow stochastic indicator has approached the level of 75.57 and is seen reversing from the top, further indicating some more downward move in the making. If 49.80 is broken on a daily basis, then prices could trend lower towards 49.56 and 49.31 levels. Any upmove might find resistance around 50.03 and 50.28 levels.
The RBI monetary policy meeting on March 15 and the Union Budget the next day will be factors the market will keenly watch. Surprise reduction of CRR by 75 bps from 5.5% to 4.75% will inject Rs 48,000 crore into the system, paving way for a bullish equity and rupee market.
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