USDINR opened at 73.74 y’day and the pair traded in the 73.64-73.78 range. Spot USDINR closed at 73.65 , gain of 13 ps for USD as against prior close of 73.52. RBI reference rate was fixed at 73.74 on Wednesday. Sep USD/INR closed at 73.73, gain of 9 ps for USD as compared to prior day’s close of 73.64. Sep Euro/INR closed at 87.04, GBP/INR at 95.16 and Yen/INR at 70.44.
FII’S have nett sold Rs 1152 Cr of Indian Equities in Sept till date . FII’S have nett bought Rs 1647 Cr of Indian debt securities in Sept till date. In this financial year, FII’S have nett bought Rs 85703 Cr of Equities and have sold Rs 39417 Cr in debt. In FY 19-20, FII’s have sold Rs 10200 Cr of Equities and 47393 cr of debt.
Benchmark Nifty declined 0.74%. DOW declined 130 points (0.47%).Nikkei declined 0.67% and Hang seng declined 1.56%.
Euro is now at 1.1852,Pound at 1.2961,Yen at 104.80.
Commodities: Gold is now at USD 1959 and WT1Crude at USD 3941.14./Brent at USD 43.52.
Interest rates: USD 10 Yr yield is at 0.68% and 3 m libor closed at 0.25%. Indian 10 yr benchmark yield closed at 5.98%.
Economic news: BoE minutes indicated that the central bank is already discussing implementing negative interest rates. BoE kept Bank Rate unchanged at 0.1% as widely expected. The target of asset purchases was also held at GBP 745B. Both decisions were made by unanimous votes. The central bank pledged to continue to “monitor the situation closely and stands ready to adjust monetary policy accordingly to meet its remit”. It “does not intend to tighten monetary policy until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2% inflation target sustainably.”
Data highlights : – – US Weekly jobless claims climbed to 860k, building permits dipped to 1.47mn and housing starts dipped to 1.42 mn.
-EU CPI declined -0.2% y/y.
Friday’s calendar: UK retail sales
Daily Support/Resistance table
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
Technicals: Spot closed below 200 day moving average. 20 day moving average is at 73.76. 50 day moving average is at 74.45.200 day moving average is at 73.81. Daily MACD is in buy zone, implying bottom at 72.70. Important support is at 72.70 and important resistance is at 73.80 and later at 74.50. Spot closed below its average level of the day.
Intra day supports and resistances for Sep contract are:
PP:73.75,S1:73.64, S2:73.56, R1:73.83, R2: 73.94.
Hedging strategy for USD/INR: Hedging decisions be taken according to comfort and accounting rates.
CROSS CURRENCY TECHNICALS:
EURO/USD: The pair is above 50 and 200 day major moving average. Next Major resistance is at 1.2018 and later at 1.21. Major support is at 1.1755 with next support at 1.1580. Daily MACD is in sell zone, implying an important top at 1.1967. Weekly MACD is in buy zone, implying important bottom at 1.0650.
GBP/USD: The pair is set to enter into bear territory. Daily MACD is in sell zone, implying important top at 1.3484 and weekly MACD is in buy zone, implying important bottom at 1.14. Important support is at 1.2670 . Important resistance is at 1.2980 and later at around 1.31.
USD/YEN: The pair is below major moving averages. Daily MACD is in buy zone, implying important bottom at 105.10. Next important resistance is at 107. Important support is at 105.10 and later at 104.10.
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