Today at 10:00 AM RBI Governor Shaktikanti Das announced its monetary policy thereby raising the repo rate by 0.50BPS. Furthermore, with a hike in interest rates, the repo rate now stood at 5.4 percent. However, considers being the highest hike since 2019. Precisely, this is the third time successively since the commencement of the present financial year.
The Repo rate is the rate at which the central bank lends short-tenure funds to state banks. Three consecutive days and decisions are now publically disclosed.
The Reserve Bank of India has already declared in its statement that they are going to withdraw the accommodative monetary policy stance there increasing the interest rates.
The whole world is facing the challenges of inflation. Therefore, their main focus is to tumble the growth of inflation.
RBI wants to limit the inflation rate by 6 percent thereby comparing capital outflows and inflows. Generally, there is a piece of good news that RBI has performed tremendously in managing the stringent rope walk among growth, capital outflows, and inflation.
Moreover, the rising interest rate cycle is not yet closed. We may further witness some more hikes to control the surging inflation rate.
USDINR has major support at $78.80. The fresh buying opportunity may witness below $78.80. If unable to break the support level of $78.80 then we may trade in a limited range between $78.80—$72.20.
Detailed Technical Analysis of Copper
If we look into the daily chart of copper, then it is forming an inverted head and shoulder pattern. Furthermore, an inverted head and shoulder pattern is a kind of technical indicator that usually gives an upside breakout.
Copper is all set to give a breakout at $3.60. Furthermore, if the level of $3.60 breaks then we may see a sharp upside rally thereby witnessing targets between $4.05 and $4.25.
Traders may buy copper below $3.60 thereby maintaining a stop loss of $3.40.