USDINR opened gap down at 71.41 Y’day and the pair traded in the 71.18-71.53 range. Spot USDINR closed at 71.21 Y’day, loss of 49 ps for USD as against prior close of 71.70. RBI reference rate was fixed at 71.42 today. Jan USD/INR closed at 71.34, loss of 51 ps for USD as compared to prior day’s close of 71.85. Jan Euro/INR closed at 79.36, GBP/INR at 93.01 and Yen/INR at 65.25. Rupee gained on inflows linked to Bharti Airtel QIP of apprx USD 2 bn. Improvement in Global sentiment also contributed to Rupee gain.
FII’S nett bought Rs 1447 Cr of Indian Equities in Jan till date . FII’S have nett sold Rs 1350 Cr of Indian debt securities in Jan till date.
Benchmark Nifty climbed 1.58% y’day. DOW climbed 211 points (0.74%) y’day. Nikkei climbed 2.31% and Hang seng climbed 1.68% y’day.
Euro is now at 1.1107,Pound at 1.3066,Yen at 109.53.
Commodities: Gold is now at USD 1549 and WT1Crude at USD 65.21/Brent at USD 59.40.
Interest rates: USD 10 Yr yield is at 1.858% and 3 m libor closed at 1.89%. Indian 10 yr benchmark yield closed at 6.56%.
Economic news: Global markets rallied, Crude and Gold declined as US-Iran concerns faded. Focus is on US non farm payrolls data and Indian IIP and CPI data.
Data highlights : – US Weekly jobless claims dipped to 214k.
-EU unemployment rate was reported at 7.5%.
Friday’s calendar: – US non farm payrolls.
Daily Support/Resistance table
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
Technicals: Spot closed above 200 day moving average. 20 day moving average is at 71.26. 50 day moving average is at 71.33.200 day moving average is at 70.30. Daily MACD is in buy zone, implying bottom at 70.52. Important support is at 71.45 and next important resistance is at 72.10. Spot closed below its average level of the day.
Intra day supports and resistances for Jan contract are:
PP: 71.42,S1:71.20, S2:71.08, R1:71.55, R2:71.76.
Hedging strategy for USD/INR: Hedging decisions be taken according to comfort and accounting rates.
CROSS CURRENCY TECHNICALS:
EURO/USD: The pair is above major moving averages. Next Major resistance is at 1.1340. Major support is at 1.1065/1.0990 and later at 1.0870. Daily MACD is in buy zone, implying an important bottom at 1.1065. 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 1.2910 and later at 1.2730.
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.