INR: Rupee Insensitive to Swings in FX Sentiment Amid Ongoing RBI Intervention

The trend condition in WTI futures is unchanged - a bear cycle remains intact. The pullback from last Tuesday’s high highlights a possible reversal and the end of the corrective phase. Initial resistance to watch is $66.03, the Sep 2 high. Key short-term resistance has been defined at $69.36, the Jul 30 high. A stronger resumption of weakness would pave the way for a move towards $57.71, the May 30 low. Gold remains in a clear bull cycle and last week’s gains plus Monday’s bullish start to the week, reinforce current conditions. The yellow metal has traded to  a fresh all-time high. The break also confirms a resumption of the primary uptrend and an extension of the sequence of higher highs and higher lows. The next objective is $3674.8, a Fibonacci projection. Initial firm support lies at $3458.7, the 20-day EMA.

• WTI Crude up $0.8 or +1.28% at $63.09
• Natural Gas up $0.05 or +1.59% at $3.139
• Gold spot up $13.88 or +0.38% at $3650.52
• Copper up $0.15 or +0.03% at $456.05
• Silver down $0.12 or -0.28% at $41.2516
• Platinum up $5.18 or +0.37% at $1391.96

A corrective bear cycle in Eurostoxx 50 futures remains in play. Recent weakness resulted in a breach of 5368.87, the 50-day EMA. The clear break of this average strengthens a short-term bearish threat and signals scope for a deeper retracement towards 5166.00, the Aug 1 low and a key support. On the upside, initial resistance to watch is 5377.49, the 20-day EMA. A clear break of it would be a bullish development. A bull cycle in S&P E-Minis remains intact and the latest pullback has once again proved to be a shallow correction. The contract traded to a fresh cycle high last week, breaching the Aug 28 high of 6523.00. This confirms a resumption of the uptrend and maintains the price sequence of higher highs and higher lows. Sights are on 6543.75 next, a Fibonacci projection. Initial support to watch is 6456.35, the 20-day EMA.

• Japan's NIKKEI closed lower by 184.52 pts or -0.42% at 43459.29 and the TOPIX ended 16.08 pts lower or -0.51% at 3122.12.
• Elsewhere, in China the SHANGHAI closed lower by 19.549 pts or -0.51% at 3807.292 and the HANG SENG ended 304.22 pts higher or +1.19% at 25938.13.
• Across Europe, Germany's DAX trades lower by 125.01 pts or -0.53% at 23680.44, FTSE 100 higher by 16.9 pts or +0.18% at 9238.13, CAC 40 up 0.05 pts or +0% at 7734.89 and Euro Stoxx 50 down 8.72 pts or -0.16% at 5354.09.
• Dow Jones mini up 2 pts or +0% at 45577, S&P 500 mini up 5.5 pts or +0.08% at 6511.5, NASDAQ mini up 35.75 pts or +0.15% at 23835.75.