USDINR opened at 71.13 on Friday and the pair traded in the 71.04-71.25 range. Spot USDINR closed at 71.12 on Friday, gain of 8 ps for USD as against prior close of 71.04. RBI reference rate was fixed at 71.08 on Thursday. Dec USD/INR closed at 71.18, gain of 6 ps for USD as compared to prior day’s close of 71.12. Dec Euro/INR closed at 79.01, GBP/INR at 92.82 and Yen/INR at 65.14.
FII’S nett sold Rs 1163 Cr of Indian Equities in Dec . FII’S have nett bought Rs 83619 Cr of Indian Equities in this calendar Year till date. FII’S have nett bought Rs 519 Cr of Indian debt securities in Dec. FII’S have nett bought Rs 40263 Cr of Indian debt in this calendar year till date.
Benchmark Nifty climbed 0.10% on Friday. DOW climbed 78 points (0.28%) on Friday. Nikkei declined 0.20% and Hang seng climbed 0.25% on Friday.
Euro is now at 1.1078 ,Pound at 1.3000,Yen at 109.45.
Commodities: Gold is now at USD 1482 and WT1Crude at USD 60.37/Brent at USD 66.04.
Interest rates: USD 10 Yr yield is at 1.917% and 3 m libor closed at 1.89%. Indian 10 yr benchmark yield closed at 6.60%.
Economic news: US Q3 GDP growth was finalized at 2.1% annual rate, unrevised, slightly up from Q2’s 2.0%. UK Q3 GDP growth was finalized at 0.4% qoq, revised up from 0.3% qoq.
Data highlights : – US Weekly jobless claims climbed to 234k and existing home sales declined marginally to 5.35 mn.
US Personal income grew 0.5% m/m, spending climbed 0.4% m/m, Core PCE index climbed 0.1% m/m, GDP was finalised at 2.1% q/q.
-EU Consumer confidence declined to -8.
-UK GDP(Final) was reported at 0.4% q/q.
-UK retail sales declined -0.6% m/m.
Monday’s calendar: – US Durables order and new home sales.
Daily Support/Resistance table
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
Technicals: Spot closed above 200 day moving average. 20 day moving average is at 71.25. 50 day moving average is at 71.25.200 day moving average is at 70.30. Daily MACD is in sell zone, implying top at 72.25. Important support is at 70.55 and next important resistance is at 71.30/71.65. Spot closed below its average level of the day.
Intra day supports and resistances for Dec contract are:
PP: 71.19,S1:71.09, S2:71, R1:71.28, R2:71.38.
Hedging strategy for USD/INR: Hedging decisions be taken according to comfort and accounting rates.
CROSS CURRENCY TECHNICALS:
EURO/USD: The pair is between major moving averages. Next Major resistance is at 1.1185. Major support is at 1.1065/1.0990 and later at 1.0870. Daily MACD is in buy zone, implying an important bottom at 1.0990. Weekly MACD is in buy zone, implying important bottom at 1.0870.
GBP/USD: The pair has turned sideways but still above major moving averages.Daily MACD is in sell zone, implying important top at 1.3425 and weekly MACD is in buy zone, implying important bottom at 1.20. Important resistance is at 1.3425. Important support is at 1.2930 and later at 1.2760.
USD/YEN: The pair is above major moving averages. Daily MACD is in buy zone, implying important bottom at 108.40. Next important resistance is at 110.65. Important support is at 108.40/107.85/ 106.50.