Broader markets, on expected lines, have relatively outperformed the benchmark during the previous week. We expect the broader market to endure its relative outperformance amid ongoing Q2FY21 result season.
During the session, the domestic unit witnessed an intra-day high of 73.69 and a low of 73.88 against the US dollar.
The ploy to weaken the rupee could be part of a multi-pronged strategy to apply pressure on China given the geopolitical tensions.
During the session, the local unit witnessed an intra-day high of 73.46 and a low of 73.67 against the US dollar.
For the day, brokerage Motilal Oswal Financial Services expects momentum for the rupee to remain low and trade with a negative bias in the range of 73.20 and 73.80.
Today, the Nifty has formed an "inside body" formation that generally helps the market to give decisive moves.
During the session, the domestic unit witnessed an intra-day high of 73.53 and a low of 73.78 against the US dollar.
FIIs net position on index futures stand at 55,000 long contracts. Also, in cash market FIIs have been net buyers of stocks to the tune of Rs. 8000 crores in month of Oct.
We believe the broader market indices have approached its maturity of price wise and time wise correction. As seen since 2009, post a sharp up move (more than 25 per cent) in the Nifty midcap and small cap indices, the intermediate average correction is to the tune of 12-15 per cent.
On the domestic front, lack of cues kept the volatility low for the currency. Appreciation for the rupee remained capped as the RBI continues to intervene to cap the volatility for the currency.
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