The increasing food prices in India still remain a concern.

The Indian Rupee remains stable at around 83 rupees per US dollar, nearing its historical high. The Reserve Bank of India has signaled its intention to continue supporting the rupee's value from depreciating significantly amidst substantial foreign currency inflows. However, there's still no inclination towards further economic stimulus due to concerns about inflation and sufficient foreign investment inflows.

The Reserve Bank of India has maintained the interest rate at 6.5% in its latest meeting, marking the sixth consecutive unchanged rate. Policymakers must closely monitor inflation due to the volatility of food and energy prices. The central bank forecasts the economic growth for the fiscal year 2025 at 7%, with expectations of 7.2% in Q1, 6.8% in Q2, 7% in Q3, and 6.9% in Q4.

The central bank of India continues to target an inflation rate of 2-6% in the medium term. RBI Governor demonstrates commitment to reducing inflation to 4% sustainably and at an appropriate time. Inflation is expected to remain unchanged at 5.4% in 2024, with GDP growth at 7.3%.

India's inflation rate decreased to 5.1% on a yearly basis in January from 5.69% in the previous month, mainly due to a decrease in food inflation, which dropped to 8.3% from 9.5%. Additionally, cooking oil prices continued to decrease by over 15%.

India's Wholesale Price Index increased by 0.27% year-on-year in January, driven by reduced food prices and non-food items. Wholesale food inflation decreased to 3.79%, while non-food inflation remained continuous at 6.56%, leading to reduced costs for various businesses.

The yield on India's 10-year government bonds stands at 7.11%, increasing in line with US Treasury yields as the US inflation decreased less than expected. Investors continue to heed signals from the Reserve Bank of India, although hopes for interest rate cuts are diminishing. Despite this, India's Purchasing Managers' Index (PMI) and GDP figures outperform those of other major economies, representing positive signs for investors and the economy.

Techical analysis data (5H)

Resistance: 83.058, 83.078, 83.113

Source: Investing.com

Buy/Long 1: If the price touches support in the price range of 82.97 - 83.004 but cannot break the support at 83.004, you may set a TP at approximately 83.078 and SL at around 82.95 or according to your acceptable risk.

Buy/Long 2: If the price breaks the resistance in the price range of 83.058 - 83.078, you may set a TP at approximately 83.113 and SL at around 82.97 or according to your acceptable risk.

Sell/Short 1: If the price touches resistance in the price range of 83.058 - 83.078 but cannot break the resistance at 83.058, you may set a TP at approximately 82.97 and SL at around 83.113 or according to your acceptable risk.

Sell/Short 2: If the price breaks the support in the price range of 82.97 - 83.004, you may set a TP at approximately 82.95 and SL at around 83.078 or according to your acceptable risk.

Pivot point February 15, 2024 03:30 PM. GMT+7