USDINR opened at 71.38 y’day and the pair traded in the 71.14-71.47 range. Spot USDINR closed at 71.17 y’day, gain of 26 ps for USD as against prior close of 71.43. RBI reference rate was fixed at 71.50 on Wednesday. Oct USD/INR closed at 71.23, loss of 30 ps for USD as compared to prior day’s close of 71.53. Oct Euro/INR closed at 79.28, GBP/INR at 91.65 and Yen/INR at 65.57. Rupee recovered as FII flows returned .US retail sales data was also weaker than expected.
FII’S have nett sold Rs 4656 Cr of Indian Equities in Oct . FII’S have nett bought Rs 40261 Cr of Indian Equities in this calendar Year till date. FII’S have nett sold Rs 932 Cr of Indian debt securities in Oct. FII’S have nett bought Rs 28217 Cr of Indian debt in this calendar year till date.
Benchmark Nifty climbed 1.07% y’day. DOW climbed 24 points(0.09%) y’day. Nikkei declined 0.09% and Hang seng climbed 0.69% y’day.
Euro is now at 1.1126 ,Pound at 1.2853,Yen at 108.55.
Commodities: Gold is now at USD 1495 and WT1Crude at USD 53.84./Brent at USD 59.60
Interest rates: USD 10 Yr yield is at 1.757% and 3 m libor closed at 2.01%. Indian 10 yr benchmark yield closed at 6.47%.
Economic news: UK PM and EU leaders reached a new brexit deal. However, this has to be approved by Parliament on Saturday. Pound surged on brexit news. Global equities also rallied.
Data highlights : – US weekly jobless claims was reported at 214k and industrial production declined -0.4% m/m.
-US building permits climbed to 1.39 mn, housing starts dipped to 1.26 mn.
-UK retail sales was flat m/m.
Friday’s calendar: – No major data release.
Daily Support/Resistance table
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
Technicals: Spot closed above 50 and 200 day moving average. 20 day moving average is at 71.17. 50 day moving average is at 71.05.12.200 day moving average is at 70.18. Daily MACD is in buy zone, implying bottom at 70.35. Important support is at 70.95 and next important resistance is at 71.80/72 and later at 72.40. Spot closed below its average level of the day.
Intra day supports and resistances for Oct contract are:
PP: 71.31,S1:71.09, S2:70.96, R1:71.44, R2:71.66
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 1.1110. Major support is at 1.0840. Daily MACD is in buy zone, implying an important bottom at 1.0870. Weekly MACD is in sell zone, implying important top at 1.1415.
GBP/USD: The pair is bullish and is trading close to 200 day moving average.Daily MACD is in buy zone, implying important bottom at 1.22 and weekly MACD is in buy zone, implying important bottom at 1.20. Important resistance is at 1.2710/1.2770. Important support is at 1.2410 and later at 1.22.
USD/YEN: The pair is between major moving averages. Daily MACD is in buy zone, implying important bottom at 106.50. Next important resistance is at 108.50/109.30. Important support is at 106.50.