USDINR opened at 77.35 on Friday and the pair traded in the 77.27-77.47 range. Spot USDINR closed at 77.44, gain of 2 ps for USD as against prior close of 77.42. RBI reference rate was fixed at 77.35 on 13/05. May USD/INR closed at 77.46, loss of 11 ps for USD as compared to prior day’s close of 77.57. May Euro/INR closed at 80.62, GBP/INR at 94.69 and Yen/INR at 60.14. USDINR fwd premia was trading at around 3.80% p.a. FX reserves stands at USD 597.73 bn as on 29/4. Market was closed y’day.
|PAIRS||RBI REF RATE (13/05)|
In 2022-23, FII’S have sold 19327 Cr of Equities till date and have sold Rs 3661 Cr of debt till date. In 2021-22, FII’S net sold Rs 128897 cr in Equity segment and have net bought Rs 4805 cr of 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 climbed 60 points (0.33%) y’day. DOW climbed 26 points (0.08%).Nikkei climbed 0.45% and Hang Seng climbed 0.26%.
Euro is now at 1.0443, Pound at 1.2327, Yen at 129.15.
Commodities: Gold is now at USD 1822 and WT1Crude at USD 112/Brent at USD 114.50.
Interest rates: USD 10 Yr yield is at 2.89% and 3 m libor closed at 1.40%. Indian 10 yr benchmark yield closed at 7.31%.
Economic news: Indian conglomerate Adani Group bought Swedish HOLCIM stake in Gujarat Ambuja cement and ACC for USD 10.5 bn. This may result in USD outflow which could negatively impact Rupee.
EU revised 2022 GDP growth forecast for Eurozone sharply lower, and inflation forecast sharply higher. GDP in 2022 is expected to be 2.7%, downgraded from 4.3%. ECB member said that a very weak Euro is contributing to inflation.
Chinese retail sales dropped -11.1% yoy in April, worse than expectation of -6.0% yoy. Industrial production dropped -2.9% yoy, versus expectation of 0.7% yoy.
Data highlights: – US NY mfrg index was reported at -11.6.
Tuesday’s calendar: – US retail sales, industrial production
-UK unemployment rate and claimant count change
Daily Support/Resistance table
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
Technicals: Spot closed above 200 day major moving averages.20 day moving average is at 76.67. 50 day moving average is at 76.32.200 day moving average is at 75. Daily MACD is in buy zone, implying bottom at 76. Important supports are at 77.15/76.95 and important resistance is at 77.60/78/78.25. Spot closed above its average level of the day.
Intraday supports and resistances for May contract are:
PP: 77.46, S1:77.33, S2:77.21, R1:77.58, R2:77.71.
Hedging strategy: Hedging decisions be taken according to comfort and accounting rates.
However on directional basis, suggest the following:
USDINR Exports can be partially hedged at 77.50+ levels.
CROSS CURRENCY TECHNICALS:
EURO/USD: The pair is below major moving averages. Major resistance is at 1.0640. Next major support is at 1.0350. Daily MACD is in sell zone, implying an important top at 1.1185. Weekly MACD is in sell zone, implying important top at 1.1498.
GBP/USD: The pair is below all moving averages. Daily MACD is in sell zone, implying important top at 1.33 and weekly MACD is in sell zone, implying important top at 1.3730. Important support is at 1.2030. Important resistance is at 1.2410/1.2640.
USD/YEN: The pair is above major moving averages. Daily MACD is in sell zone, implying important top at 131.30. Important support is at 127.10.
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