USDINR opened at 71.91 Y’day and the pair traded in the 71.70-72.09 range. Spot USDINR closed at 71.78 y’day, gain of 1 ps for USD as against prior close of 71.77. RBI reference rate was fixed at 71.82 on Tuesday. Sep USD/INR closed at 72, loss of 3 ps for USD as compared to prior day’s close of 72.03. Sep Euro/INR closed at 79.88, GBP/INR at 87.92 and Yen/INR at 67.80.
FII’S have nett sold Rs 10639 Cr of Indian Equities in Aug . FII’S have nett bought Rs 54860 Cr of Indian Equities in this calendar Year till date. FII’S have pulled out Rs 22000 Cr of Indian Equities since budget day. FII’S have nett bought Rs 8240 Cr of Indian debt securities in Aug FII’S have nett bought Rs 27022 Cr of Indian debt in this calendar year till date.
Benchmark Nifty declined 0.89% Y’day. DOW climbed 258 points(1%) y’day. Nikkei declined 0.09% and Hang seng climbed 0.34% y’day.
Euro is now at 1.1044 ,Pound at 1.2180,Yen at 106.49.
Commodities: Gold is now at USD 1533 and WT1Crude at USD 56.64/Brent at USD 60.59.
Interest rates: USD 10 Yr yield is at 1.456% and 3 m libor closed at 2.15%. Indian 10 yr benchmark yield closed at 6.55%.
Economic news: Global stocks rebounded as Chinese official called for removal of new tariffs and discussions to deescalate trade war.
Data highlights : US Weekly jobless claims rose to 215k, pending home sales declined -2.5% y/y and trade deficit was reported at -72.3 bn in July.
Friday’s calendar: – US personal income, spending and Core PCE index
-German retail sales, EU CPI and unemployment rate
-Japanese CPI, unemployment rate and housing starts.
Daily Support/Resistance table
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
Technicals: Spot closed above 50 and 200 day moving averages. 20 day moving average is at 71. 50 day moving average is at 69.75.200 day moving average is at 70.25. Daily MACD is in buy zone, implying bottom at 68.30. Important support is at 71.45/70.85 and next important resistance is at 72.25/72.45. Spot closed below its average level of the day.
Intra day supports and resistances for Aug contract are:
PP: 72.05,S1:71.78, S2:71.58, R1:72.26, R2:72.52.
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 1.1250 Major support is at 1.1025. Daily MACD is in sell zone, implying an important top at 1.1250. Weekly MACD is in sell zone, implying important top at 1.1415.
GBP/USD: The pair is bearish and is trading below major moving averages.Daily MACD is in buy zone, implying important bottom at 1.2050 and weekly MACD is in sell zone, implying important top at 1.3385. Important resistance is at 1.2380. Important support is at 1.20.
USD/YEN: The pair is below major moving averages. Daily MACD is in buy zone, implying important bottom at 105. Next important resistance is at 109 and later at 110.50. Important support is at 105.