The Indian rupee pared all the losses and closed marginally stronger against the US dollar ahead of the rollout of goods and services tax due later on Friday which has been implemented on 30th June mid night onwards. The GST will replace the existing multiple indirect taxes with uniform tax across India, making it easier to do business in Asia’s third-largest economy and in turn boost domestic stocks. But the markets will need some time to adjust to the GST implementation process, which could partially hurt corporate earnings, although the ill-effects will likely fade in the long term. We expect the rupee to trade sideways with a negative bias in a narrow range in the absence of any strong domestic or global cues.
The 10-year bond yield closed at 6.511%, a level last seen on 12 June, compared to its previous close of 6.507%. Bond yields and prices move in opposite directions.
USDINR July
Support at 64.75 and Resistance at 65.08.
Below 64.75 panic likely to continue till 64.50—64.35 and then to 64.18 mark.
Fresh buying can be seen above 65.08.
GBPINR
Support at 84.10 and Resistance at 84.70
Close below 84.10 will take it to 83.70—83.40 mark else could touch its resistance level of 84.70.
Fresh buying can be initiated above 84.70 mark.
EURINR
Support at 73.80 and Resistance at 74.25
Close above 74.25 will take it to 74.60---74.90++ mark else could touch its support level of 73.80 mark.
Fresh selling can be initiated below 73.80 mark.
JPYINR
Support at 57.60 and Resistance at 58.10
Looks weak and could touch its support level of 57.60, Break and sustain below 57.60 will take it to 57.30—57.10 mark.
Fresh buying can be initiated above 58.10 mark.
More will update soon!!
