USDINR opened lower at 71.32 Y’day and the pair traded in the 70.43-71.36 range. Spot USDINR closed at 70.45, loss of 90 ps for USD as against prior close of 71.35. RBI reference rate was fixed at 71.19. Dec USD/INR closed at 70.50, loss of one Rupee and 12 ps for USD as compared to prior day’s close of 71.62. Dec Euro/INR closed at 80.46, GBP/INR at 89.48 and Yen/INR at 62.88. Rupee gained as Crude declined over 4% y’day.
FII’S have bought Rs 2358 Cr of Indian Equities in Dec . FII’S have bought Rs 1512 Cr of Indian debt securities in Dec till date . On a cumulative basis, FII’S have sold Rupees 24323 Cr of Indian Equities till date for this calendar year and have sold Rupees 55544 Cr of Indian debt in this calendar year till date.
Benchmark Nifty climbed 0.19% y’day. DOW climbed 82 points (0.35%) Y’day. Nikkei declined 1.82% and Hang seng declined 1.05% y’day.
Euro is now at 1.1385, Pound at 1.2676,Yen at 112.38.
Commodities: Gold is now at USD 1254 and WT1Crude at USD 46.71 /Brent at USD 56.45.
Interest rates: USD 10 Yr yield is at 2.86% and 3 m libor closed at 2.90%. Indian 10 yr benchmark yield closed at 7.35%.
Economic news: Oil prices fell on Tuesday, dropping for a third-consecutive session amid indications of swelling global inventories due to record U.S. and Russian output.Worries that the ongoing U.S.-China trade dispute will drag on global growth and, by extension, erode energy demand, also weighed.
US President advised Fed to ignore meaningless numbers and feel the market while taking rate decision. Fed decision is awaited and will direct maket direction in Dec.
Japanese cabinet office lowered 2018 growth to 0.9% from 1.5% and 2019 growth to 1.3% from earlier estimate of 1.5%.
Data highlights : – US building permits climbed to 1.33m and housing starts climbed to 1.26mn.
-German Ifo survey dipped to 101.
Wednesday’s calendar: – FOMC meet and US existing home sales
-UK CPI, RPI and PPI(output)
Daily Support/Resistance table
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
|USD/INR||71.15/69.50||72.45||UP||SIDE < 71.10|
Technicals: Spot closed below 20,50 and 100 day movong averages but still above 20 day major moving average. 20 day moving average is at 71.04. 50 day moving average is at 72.37. 200 day moving average is at 68.78. Daily MACD is in buy zone, implying bottom at 69.50 . Important support zone is at 69.50. Spot closed below its average level of the day.
Intra day supports and resistances for DEC contract are:
PP: 70.84,S1:70.13, S2:69.76, R1:71.21, R2:71.92.
Hedging strategy for USD/INR: Hedging decisions be taken according to comfort and accounting rates.
CROSS CURRENCY TECHNICALS:
EURO/USD: The pair is below major moving averages. Next Major resistance is at 1.1500 and later at 1.1620. Major support is at 1.12. Daily MACD is in sell zone, implying an important top at 1.1470. Weekly MACD is in sell zone, implying important top at 1.1805.
GBP/USD: The pair is below 200 day moving average.Trend is bearish in daily chart. Daily MACD is in sell zone, implying important top at 1.3175 and weekly MACD is in sell zone, implying important top at 1.3298. Important resistance is at 1.27 and later at 1.29. Important support is at 1.2475 and later at 1.2360.
USD/YEN: The pair is above major moving averages. Daily MACD is in buy zone, implying important bottom at 112.20. Next important support is at 112.20/111.35. Important resistance is at 114.20/114.60/