The MCX-SX INR January Rupee futures contract inched up on Monday, propped up by firmer Asian stock markets but gains were limited by reduced dollar buying by importer. The demand for dollars was limited because of a holiday in the United States. U.S. markets are shut on Monday for the Martin Luther King Jr. Day holiday.
Asian stocks pushed higher and the dollar lost ground as investors looked for U.S. President-elect Barack Obama to quickly roll out hefty economic stimulus spending and a revived plan to buy bad bank assets. There was speculation that the broad drop in the Japanese yen against the majors raised hopes of easing of risk aversion among investors, which could be positive for the rupee.
The MCX-SX INR January Rupee futures contract trimmed gains on Monday afternoon as swaying stocks failed to provide cues on the direction of fund flows but the dollar's weakness overseas helped market sentiment. India's main share index was choppy on Monday with concerns about slowing earnings growth and rising foreign fund outflows dominating sentiment.
MCX-SX INR January’09 futures prices closed weaker towards 48.73 on Monday. Important supports are between 48.10/48.20 followed by 47.50/47.60 range. Resistance is at 49.25/49.30 followed by 49.90/50 levels.
MCX-SX INR February’09 futures closed towards 48.85 and registered an increase in volume by 13.46 %. The MCX-SX INR February’09 futures also printed an open interest of 25484.
INR SPOT: Immediate Supports are now towards 48.10/48.20 levels followed by 47.60/47.70 levels. Resistance is at 49.20/49.30 zones (the horizontal line), followed by 49.65/49.75.
MCX-SX INR futures active January contract registered a decrease in volume by 20.93% over the previous session.
