USDINR opened at 82.81 y’day and the pair traded in the 82.75-82.89 range. Spot USDINR closed at 82.70, loss of 16 ps for USD as against prior close of 82.86.

RBI reference rate was fixed at 82.64 on 19/12. Dec USD/INR closed at 82.71, loss of 6 ps for USD as compared to prior day’s close of 82.77. Dec Euro/INR closed at 87.80, GBP/INR at 100.79 and Yen/INR at 60.76. USDINR fwd premia was trading at around 1.99% p.a.  FX reserves stands at USD 564 bn as on Dec 9 th.  FX reserves have risen for the 5^th straight week from USD 527 bn.

In Dec, FII’S have bought Rs 1642 Cr of Equities till date and have sold Rs 2508 Cr of debt till date. In this Calendar Year, FII’S have sold close to Rs 1.15 lac Cr worth of Equities.

Benchmark Nifty climbed 151 points (0.83%) y’day. DOW declined 162 points (0.49%). Nikkei declined 1.05% and Hang Seng declined 0.50% y’day.

Euro closed the week 1.0599, Pound at 1.2143, Yen at 137.45.

Commodities: Gold is now at USD 1795 and WT1Crude at USD 76/Brent at USD 80.

Interest rates: USD 10 Yr yield is at 3.59% and 3 m libor closed at 4.77%. Indian 10 yr benchmark yield closed at 7.27%.

Economic news: Germany Ifo Business Climate rose from 86.4 to 88.6 in December, above expectation of 87.2. Ifo said: “Sentiment in the German economy has brightened considerably. Companies assessed their current situation as better again. This comes on the heels of six consecutive falls in the indicator for the current situation. Expectations also improved noticeably. German business is entering the holiday season with a sense of hope.

Data highlights: – German Ifo survey climbed to 88.6.

Tuesday’s calendar : – US building permits and housing starts

-EU Consumer confidence

Daily Support/Resistance table

 MAJOR SUPPORTS/RESISTANCES AND TREND TABLE

Technicals: Spot closed above 50, 200 day major moving averages.20 day moving average is at 82.11. 50 day moving average is at 82.09.200 day moving average is at 79.10. Daily MACD is in buy zone. Important support is at 81.95 and important resistance is at 82.92. Spot closed at its average level of the day.

Intraday supports and resistances for Dec contract are:

PP: 82.72, S1:82.58, S2:82.46, R1:82.84, R2:82.98.             

Hedging strategy: Hedging decisions be taken according to comfort and accounting rates.

However on directional basis, suggest the following:

Exports be hedged on rally to 82.90+.

CROSS CURRENCY TECHNICALS:

EURO/USD: The pair is above 50 and 20 day major moving averages. Major resistance is at 1.0735. Next major support is at 1.0440/1.0290. Daily MACD is in sell zone, implying an important top at 1.0735. Weekly MACD is in buy zone, implying important bottom at 0.9535.

GBP/USD: The pair is above 50 and 20 day moving averages. Daily MACD is in sell zone, implying important top at 1.2445 and weekly MACD is in buy zone, implying important bottom at 1.0380. Important support is at 1.2105/1.19. Important resistance is at 1.2350/1.2750.

USD/YEN: The pair is below 20, 50 and 100 day moving averages. Daily MACD is in buy zone, implying important bottom at 133.60. Important support is at 133.60/130.50. Major resistance is at 137.70/140.50/142.25.

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