USDINR opened at 71.32 Y’day and the pair traded in the 71.31-71.67 range. Spot USDINR closed at 71.60 y’day, gain of 25 ps for USD as against prior close of 71.35. RBI reference rate was fixed at 71.36 on Wednesday. Dec USD/INR closed at 71.78, gain of 23 ps for USD as compared to prior day’s close of 71.55. Dec Euro/INR closed at 79.11, GBP/INR at 92.81 and Yen/INR at 65.71.
FII’S nett bought Rs 15557 Cr of Indian Equities in Nov . FII’S have nett bought Rs 75807 Cr of Indian Equities in this calendar Year till date. FII’S have nett sold Rs 881 Cr of Indian debt securities in Nov. FII’S have nett bought Rs 42277 Cr of Indian debt in this calendar year till date.
Benchmark Nifty climbed 0.42% y’day. US market was closed y’day. Nikkei declined 0.12% and Hang seng declined 0.22% y’day.
Euro is now at 1.1011 ,Pound at 1.2911,Yen at 109.52.
Commodities: Gold is now at USD 1462 and WT1Crude at USD 58.09./Brent at USD 63.13.
Interest rates: USD 10 Yr yield is at 1.767% and 3 m libor closed at 1.93%. Indian 10 yr benchmark yield closed at 6.46%.
Economic news: Focus is on Indian Q2 GDP.
US Fed’s Beige Book report noted that economic activity expanded “modestly” in the period. Most Districts reported “stable to moderately” growing consumer spending.
Data highlights : – No major data release.
Thursday’s calendar: – EU Flash CPI and German retail sales.
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 71.38. 50 day moving average is at 71.20.200 day moving average is at 70.28. Daily MACD is in sell zone, implying top at 72.25. Important support is at 71.30/71 and next important resistance is at 71.80. Spot closed above its average level of the day.
Intra day supports and resistances for Dec contract are:
PP: 71.68,S1:71.51, S2:71.24, R1:71.95, R2:72.12
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 1.11/1.1180. Major support is at 1.10 and later at 1.0870. Daily MACD is in sell zone, implying an important top at 1.11. 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 1.27 and later at 1.2550.
USD/YEN: The pair is above major moving averages. Daily MACD is in sell zone, implying important top at 109.50. Next important resistance is at 109.50/110.65. Important support is at 107.85/106.50.