USDINR opened at 74.53 Y’day and the pair traded in the 74.31-74.54 range. Spot USDINR closed at 74.39, loss of 9 ps USD as against prior close of 74.48. RBI reference rate was fixed at 74.40 on 24/11. Nov USD/INR closed at 74.43, loss of 5 ps for USD as compared to prior day’s close of 74.48. Oct Euro/INR closed at 83.49, GBP/INR at 99.45 and Yen/INR at 64.77. USDINR fwd premia was trading at around 4.72% p.a.  

In NOV, FII’S have net sold Rs 9999 cr in Cash Equity segment and have net bought Rs 5485 cr of debt. In this financial year, FII’S have net sold Rs 14593 Cr worth of Indian Equities and have bought Rs 23057 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 88 points (-0.5%). DOW climbed 17 points (0.00%). Nikkei was UP 0.09% and Hang seng declined 0.23% .

Euro is now at 1.1212, Pound at 1.3344, Yen at 115.38.

Commodities: Gold is now at USD 1793 and WT1Crude at USD 78.40/Brent at USD 82.25.

Interest rates: USD 10 Yr yield is at 1.64% and 3 m libor closed at 0.17%. Indian 10 yr benchmark yield closed at 6.36%.

Economic news: USD was supported by Fed’s hawkish minutes which noted that “Various participants noted that the Federal Open Market Committee should be prepared to adjust the pace of asset purchases and raise the target range for the federal funds rate sooner than participants currently anticipated if inflation continued to run higher,” 

US GDP grew 2.1% quarter-on-quarter in the third quarter.

Data highlights: – US Core durables order climbed 0.5% m/m. Personal income climbed 0.5% m/m and spending climbed 1.3% m/m. Core PCE index climbed 0.4% m/m.

-US Weekly jobless claims declined to 1.99 k, lowest in many months.

EU PMI(mfrg) was better than expected at 58.6 and PMI(services-flash) improved to 56.6.

Thursday’s calendar: – ECB meeting minutes.

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 74.54. 50 day moving average is at 74.43.200 day moving average is at 73.72. Daily MACD is in sell zone, implying top at 75.68. Important resistance is at 74.58 and important support is at 73.90. Spot closed below its average level of the day.

Intraday supports and resistances for Nov contract are:

PP: 74.45, S1:74.30, S2:74.19, R1:74.57, R2:74.71             

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 .

Exporters can hedge EURINR receivables exposure at 85.50.

CROSS CURRENCY TECHNICALS:

EURO/USD: The pair is below 50, 100 and 200 day moving averages. Major resistance is at 1.1535. Next major support is at 1.1250. Daily MACD is in sell zone, implying an important top at 1.17. Weekly MACD is in sell zone, implying important top at 1.2270.

GBP/USD: The pair is below 50 and 200 day moving averages. Daily MACD is in buy zone, implying important bottom at 1.3350 and weekly MACD is in sell zone, implying important top at 1.4240. Important support is at 1.3350. Important resistance is at 1.3650/1.3840.

USD/YEN: The pair is above major moving averages. Daily MACD is in sell zone, implying important top at 115. Next important resistance is at 115. Important support is at 112.70.

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