Global Markets & India Daily UpdateDate: Tuesday, May 21, 2025

🔄 Forex – #USDINR Technical Outlook

The USDINR currency pair faced strong resistance near the 85.60–85.70 zone during the last trading session (Monday). Market participants are closely watching the 85.40 support level. A sustained move below 85.40 could potentially open the door toward 85.00, increasing bearish sentiment.

The #Greenback weakened following #Moody’s downgrade of the U.S. government’s credit rating, leading to pressure on the dollar across global markets.

• Intraday Range:•

  • Support: 85.00

  • Resistance: 85.65 – 85.85

  • Downside extension: 84.75

📈 Indian #indices – Resilience Despite Resistance

Indian #indices markets are seeing mild resistance at higher levels, yet the overall upward trend remains intact.Asian peers traded marginally higher, led by China, following a key interest rate cut by Beijing. Australian equities also remained firm, buoyed by expectations of a rate cut by the RBA.

#Nifty 50:• Support: 24,856• Buy Signal Above: 25,020

#Sensex:• Support: 81,800• Buy Signal Above: 82,400

#Nifty Bank:• Support: 55,200• BUY on current dips above support.

📉 Indian #Bond Market – Yields Drop, Prices Surge

Bond #yields from 1-Year to 40-Year maturities have seen a broad-based correction, resulting in a surge in bond prices due to increased demand.This rally is supported by:

• Easing inflation trends

• Global central banks leaning toward rate cuts

• Tentative progress in Russia-Ukraine peace efforts

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🪙 #Commodities Market Snapshot

🔧 #Metals

·         Downward Pressure: Aluminium, Copper, Gold, Silver, Tin

·         Gaining Ground: Lead, Palladium, Zinc

🔋 #Energy

·         Correcting Lower: Brent Oil, Crude Oil (WTI), London Gas Oil, Carbon Emissions

·         Trending Higher: Heating Oil, Natural Gas, RBOB Gasoline

🌾 #Grains

·         Broad correction across most grain futures, supported by:

o    Geopolitical stability prospects

o    Dovish inflation outlook by global central banks

⚠️ Market Sentiment Summary

·         Forex: Bearish bias on USD/INR below 85.40

·         Equities: Cautious optimism with support levels holding

·         Bonds: Bullish due to easing inflation and dovish central banks

·         Commodities: Mixed – rotation in metals and energy; grains correcting

📌 This commentary is for informational purposes only. Please consult your financial advisor before making investment decisions.