USDINR opened at 73.54 on Friday and the pair traded in the 73.50-73.58 range. Spot USDINR closed at 73.57 , loss of 2 ps 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 73.61, loss of 4 ps for USD as compared to prior day’s close of 73.65. Dec Euro/INR closed at 90.12, GBP/INR at 99.55 and Yen/INR at 71.20.
Rupee continued to trade in a narrow range. Equity indices led by IT sector continued to rally without correction.
FII’S nett bought Rs 39725 Cr of Indian Equities in Dec . FII’S nett bought Rs 5962 Cr of Indian debt securities in Dec . In this financial year, FII’S have nett bought Rs 198635 Cr of Equities and have sold Rs 25804 Cr in debt. In FY 19-20, FII’s sold Rs 10200 Cr of Equities and 47393 cr of debt.
Benchmark Nifty climbed 0.14% on Friday.DOW declined 124 points (0.41%) on Friday.Nikkei declined 0.16% and Hang seng declined 0.67%.
Euro closed the week at 1.2257,Pound at 1.3520,Yen at 103.31.
Commodities: Gold is now at USD 1887 and WT1Crude at USD 49.06/Brent at USD 52.30.
Interest rates: USD 10 Yr yield is at 0.948% and 3 m libor closed at 0.23%. Indian 10 yr benchmark yield closed at 5.96%.
Economic news: German economic institute Ifo said: “Companies were more satisfied with their current business situation. They were also less skeptical about the coming six months. While the lockdown is hitting certain sectors hard, overall the German economy is showing resilience.
Bank of Japan said that Japan’s economy is “likely to follow an improving trend” with gradual waning of COVID-19 impact. But pace of improvement is expected to be “only moderate”.
Data highlights: – German Ifo climbed to 92.1.
-UK retail sales declined -3.8% m/m.
Monday’s calendar: – EU Consumer confidence.
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 73.78. 50 day moving average is at 73.83.200 day moving average is at 74.60. 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:73.62,S1:73.55, S2:73.49, R1:73.68, R2: 73.75.
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 1.2470. 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 buy zone, implying important bottom at 1.3135 and weekly MACD is in buy zone, implying important bottom at 1.2675. Important support is at 1.34/1.3225 . Important resistance is at 1.3710.
USD/YEN: The pair is below major moving averages. Daily MACD is in sell zone, implying important top at 104.75. Next important resistance is at 104.75/105.70. Important support is at 103.10//101.20.
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