USDINR opened at 73.53 Y’day and the pair traded in the 73.39-73.59 range. Spot USDINR closed at 73.59 , unchanged for USD as against prior close of 73.59. RBI reference rate was fixed at 73.52 on 16/12. Dec USD/INR closed at 73.65, loss of 3 ps for USD as compared to prior day’s close of 73.68. Dec Euro/INR closed at 90.08, GBP/INR at 100.23 and Yen/INR at 71.45.
FII’S nett bought Rs 24250 Cr of Indian Equities in Dec . FII’S nett bought Rs 1976 Cr of Indian debt securities in Dec . In this financial year, FII’S have nett bought Rs 183160 Cr of Equities and have sold Rs 29790 Cr in debt. In FY 19-20, FII’s sold Rs 10200 Cr of Equities and 47393 cr of debt.
Benchmark Nifty climbed 0.42% Y’day.DOW climbed 148 points (0.49%) y’day.Nikkei climbed 0.18% and Hang seng climbed 0.82%.
Euro is now at 1.2255,Pound at 1.3352,Yen at 103.33.
Commodities: Gold is now at USD 1884 and WT1Crude at USD 48.25/Brent at USD 51.35.
Interest rates: USD 10 Yr yield is at 0.93% and 3 m libor closed at 0.23%. Indian 10 yr benchmark yield closed at 5.94%.
Economic news: BoE judged that “the existing stance of monetary policy remains appropriate”. Bank Rate was held unchanged at 0.10%. Total target stock of asset purchase were also kept at GBP 895B. Both decisions were unanimous. BOE noted that the roll out of coronavirus vaccines is “likely to reduce the downside risks to the economic outlook from Covid”.
USD continued to weaken against majors. Rupee gain was stemmed due to USD buying by private banks.
Data highlights: – US weekly jobless claims climbed to 885k, building permits climbed to 1.64mn, housing starts was higher at 1.55 mn and phily Fed mfrg index dipped to 11.1
-EU CPI declined -0.3% y/y.
Friday’s calendar: – German Ifo
-UK retail sales.
Daily Support/Resistance table
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
Technicals: Spot closed below 100 and 200 day moving average. 20 day moving average is at 73.81. 50 day moving average is at 73.83.200 day moving average is at 74.55. Daily MACD is in sell zone, implying top at 74.86. Important support is at 73.45 and important resistance is at 73.95/74.40 . Spot closed above average level of the day.
Intra day supports and resistances for Dec contract are:
PP:73.59,S1:73.51, S2:73.38, R1:73.72, R2: 73.80.
Hedging strategy for USD/INR: Hedging decisions be taken according to comfort and accounting rates.
CROSS CURRENCY TECHNICALS:
EURO/USD: The pair is above all major moving averages. Next Major resistance is at 1.2220. Major support is at 1.2060/1.1960. Daily MACD is in buy zone, implying an important bottom at 1.1610. Weekly MACD is in buy zone, implying important bottom at 1.1610.
GBP/USD: The pair is above major moving averages . Daily MACD is in sell zone, implying important top at 1.3540 and weekly MACD is in buy zone, implying important bottom at 1.2675. Important support is at 1.31/1.2850 . Important resistance is at 1.3540.
USD/YEN: The pair is below major moving averages. Daily MACD is in buy zone, implying important bottom at 103.60. Next important resistance is at 104.65/105.70. Important support is at 103.60/103.10//101.20.
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