The MCX-SX March Rupee futures traded marginally stronger in opening deals on Wednesday morning on the back of some recovery in Asian share indices.
Dow Jones was positive and closed higher by around 130 points. Singapore Nifty futures were pointing at a higher opening in India during pre-opening trading hours. BSE Sensex opened with a positive gap of 90 points.
The negative factors for the rupee are still dominant though as S&P cut its outlook on India's long-term sovereign credit rating to negative from stable, citing worsening government finances, which could raise firms' overseas borrowing costs. 1 month offshore non-deliverable forwards were trading at premium to the spot rate, indicating a weaker forecast.
Analysts were of the view that the strength seen today in the rupee was due to the stimulus package worth 30000 crore announced by the government yesterday, but this may not be enough to stem the fall in rupee.
The MCX-SX March Rupee futures remained in a stable range throughout the afternoon session. The BSE Sensex closed the day higher by 80 points from Tuesday’s close.
Active MCX-SX INR March ’09 futures closed weaker today towards 50.04. Important supports are still intact between 49.50/49.60 followed by 49.10/49.20. Immediate resistance falls around 50.25/50.35 followed by 50.95/51.05 levels.
The MCX-SX March’09 Rupee futures registered an open interest of 147678 for the session. It registered an increase in volume by 80.292% over its earlier session. MCX-SX April’09 Rupee futures closed towards 50.1200.
INR SPOT: Important supports now are at 49.60/49.70 followed by 49.20/49.30. Immediate resistance falls around 50.00/50.10 followed by 50.45/50.55 levels. The horizontal line seen in the chart above is expected to provide support towards 49.20/30 in future.
