USDINR opened higher at 71.27 on Friday and the pair traded in the 71.16-71.33 range. Spot USDINR closed at 71.28 on Friday, gain of 32 ps for USD as against prior close of 70.96. RBI reference rate was fixed at 71 on Thursday. Nov USD/INR closed at 71.38, gain of 32 ps for USD as compared to prior day’s close of 71.06. Nov Euro/INR closed at 78.82, GBP/INR at 91.35 and Yen/INR at 65.27.
FII’S nett bought Rs 4444 Cr of Indian Equities in Oct . FII’S have nett bought Rs 64694 Cr of Indian Equities in this calendar Year till date. FII’S have nett bought Rs 4617 Cr of Indian debt securities in Oct. FII’S have nett bought Rs 47775 Cr of Indian debt in this calendar year till date.
Benchmark Nifty declined 0.86% on Friday. DOW climbed 6 points (0.02%) on Friday. Nikkei climbed 0.26% and Hang seng declined 0.70% on Friday.
Euro closed the week at 1.1053 ,Pound at 1.2815,Yen at 109.20.
Commodities: Gold is now at USD 1459 and WT1Crude at USD 57.45./Brent at USD 62.60.
Interest rates: USD 10 Yr yield is at 1.933% and 3 m libor closed at 1.93%. Indian 10 yr benchmark yield closed at 6.56%.
Economic news: Rupee declined as Moody lowered Indian rating outlook to negative from stable,citing possibility of fiscal slippage and rising debt levels due to prolonged lower growth. Rating agency added that Govt policy measures would be limited to support business investment and significantly broaden the tax base. Foreign Currency rating was maintained at existing grade.
FII’S bought higher qty of Rupee debt papers as hedging cost declined.
Data highlights : – No major data release
Monday’s calendar: No major data release.
Daily Support/Resistance table
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
Technicals: Spot closed above 100 and 200 day moving average. 20 day moving average is at 71.02. 50 day moving average is at 71.23.200 day moving average is at 70.28. Daily MACD is in buy zone, implying bottom at 70.55. Important support is at 70.55 and next important resistance is at 71.75. Spot closed above its average level of the day.
Intra day supports and resistances for Nov contract are:
PP: 71.35,S1:71.28, S2:71.18, R1:71.45, R2:71.52
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 1.1180. Major support is at 1.10 and later at 1.0870. Daily MACD is in sell zone, implying an important topo at 1.1185. Weekly MACD is in buy zone, implying important bottom at 1.0870.
GBP/USD: The pair is sideways but is still trading above 200 day moving average.Daily MACD is in sell zone, implying important top at 1.30 and weekly MACD is in buy zone, implying important bottom at 1.20. Important resistance is at 1.30/1.31. Important support is at 1.2705 and later at 1.2550.
USD/YEN: The pair is above major moving averages. Daily MACD is in buy zone, implying important bottom at 107.85. Next important resistance is at 110.65. Important support is at 107.85/106.50.