USDINR opened at 70.29 y’day and the pair traded in the 70.04-70.52 range. Spot USDINR closed at 70.18, gain of 1 ps for USD as against prior close of 70.17. RBI reference rate was fixed at 69.71. Jan USD/INR closed at 70.36, gain of 1 ps for USD as compared to prior day’s close of 70.35. Jan Euro/INR closed at 80.05, GBP/INR at 88.47 and Yen/INR at 65.51.
FII’S have bought Rs 3531 Cr of Indian Equities in Dec . FII’S have bought Rs 4965 Cr of Indian debt securities in Dec till date . On a cumulative basis, FII’S have sold Rupees 23769 Cr of Indian Equities till date for this calendar year and have sold Rupees 51328 Cr of Indian debt in this calendar year till date.
Benchmark Nifty declined 1.11% y’day. DOW declined 660 points (2.83%) y’day. Nikkei declined 0.31% and Hang seng declined 0.26% y’day.
Euro is now at 1.1394, Pound at 1.2641,Yen at 108.30.
Commodities: Gold is now at USD 1296 and WT1Crude at USD 47.18 /Brent at USD 55.95.
Interest rates: USD 10 Yr yield is at 2.55% and 3 m libor closed at 2.90%. Indian 10 yr benchmark yield closed at 7.43%.
Economic news: Global stocks were weighed down by Chinese slowdown and earnings downgrades. Pound is weak on BREXIT uncertainity.
Data highlights : – US weekly jobless claims inched higher to 231k, ADP employment report showed 271k private sector jobs were added.
-US ISM(mfrg) dipped to 54.1.
-UK PMI(construction) was reported at 52.8.
Friday’s calendar: – US NFP and unemployment rate
-EU CPI and PMI(services) and EU PPI
Daily Support/Resistance table
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
|USD/INR||69.50||70.50/71||SIDE||UP > 71|
Technicals: Spot closed below 20,50 and 100 day moving averages but still above 200 day major moving average. 20 day moving average is at 70.64. 50 day moving average is at 71.61. 200 day moving average is at 69.30. Daily MACD is in sell zone, implying top at 72.45. Important support zone is at 69.50. Spot closed below its average level of the day.
Intra day supports and resistances for Jan contract are:
PP: 70.42,S1:70.14, S2:69.92, R1:70.63, R2:70.91
Hedging strategy for USD/INR: Hedging decisions be taken according to comfort and accounting rates.
CROSS CURRENCY TECHNICALS:
EURO/USD: The pair is below 200 day moving average. Next Major resistance is at 1.1500 and later at 1.1620. Major support is at 1.1265/1.12. Daily MACD is in buy zone, implying an important bottom at 1.1265. 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 buy zone, implying important bottom at 1.2480 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 below major moving averages. Daily MACD is in sell zone, implying important top at 114. Next important support is at 109.80. Important resistance is at 112.50.