USDINR opened at 74.82 on Friday and the pair traded in the 74.70-74.94 range. Spot USDINR closed at 74.89, gain of 3 ps USD as against prior close of 74.86. RBI reference rate was fixed at 74.78 on 22/10. Oct USD/INR closed at 74.89, unchanged for USD as compared to prior day’s close of 74.89. Oct Euro/INR closed at 87.17, GBP/INR at 103.24 and Yen/INR at 65.81. USDINR fwd premia was trading at around 4.47% p.a.
|PAIRS||RBI REF RATE (22/10)|
In Oct, FII’S have net bought Rs 962 cr in Equity segment and have net sold Rs 2051 cr of debt. In this financial year, FII’S have net bought Rs 6249 Cr worth of Indian Equities and have bought Rs 17337 Cr worth of Indian debt. In 2020-21 financial Year, FII’S nett bought Rs 2,74,203 Cr of Equities and have sold Rs 42820 Cr in debt.
Benchmark Nifty declined 0.35% on Friday. DOW climbed 73 points (0.21%). Nikkei was up 0.34% and Hang seng climbed 0.42% on Friday.
Euro closed the week at 1.1642, Pound at 1.3754, Yen at 113.47.
Commodities: Gold is now at USD 1793 and WT1Crude at USD 83.98/Brent at USD 85.72.
Interest rates: USD 10 Yr yield is at 1.63% and 3 m libor closed at 0.12%. Indian 10 yr benchmark yield closed at 6.36%.
Economic news: Global bond yield curve steepened with US Yield curve predicting rate hike by 2022. Indian 10 Year G-SEC yield climbed to 6.39%. Energy prices continued to climb higher.
Data highlights: – EU PMI (flash-mfrg) climbed to 58.5 and PMI(flash-services) dipped to 54.7.
-UK retail sales declined -0.2% m/m.
Monday’s calendar: – German Ifo business survey.
Daily Support/Resistance table
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
Technicals: Spot closed above 50 and 100,200 day major moving averages.20 day moving average is at 74.64. 50 day moving average is at 74.12.200 day moving average is at 73.66. Daily MACD is in sell zone, implying top at 75.68. Important resistance is at 75.16/75.68 and important support is at 74.70. Spot closed above its average level of the day.
Intraday supports and resistances for Oct contract are:
PP: 74.85, S1:74.74, S2:74.60, R1:74.99, R2:75.10
Hedging strategy: Hedging decisions be taken according to comfort and accounting rates.
However on directional basis, suggest the following:
USDINR Imports hedging can be done at around 74.70. Exports can be hedged at 75.50.
Exporters can hedge EURINR receivables exposure at 87.25+.
CROSS CURRENCY TECHNICALS:
EURO/USD: The pair is below 50, 100 and 200 day moving averages. Major resistance is at 1.1670/1.1710. Next major support is at 1.1530/1.1480. Daily MACD is in buy zone, implying an important bottom at 1.1525. Weekly MACD is in sell zone, implying important top at 1.2270.
GBP/USD: The pair is above 50 and 200 day moving averages. Daily MACD is in buy zone, implying important bottom at 1.3410 and weekly MACD is in sell zone, implying important top at 1.4240. Important support is at 1.3650/1.3410. Important resistance is at 1.3840.
USD/YEN: The pair is above major moving averages. Daily MACD is in buy zone, implying important bottom at 109.10. Next important resistance is at 114.70. Important support is at 112.10.