USDINR opened at 79.66 on Friday and the pair traded in the 79.62-79.72 range. Spot USDINR closed at 79.65, gain of 2 ps for USD as against prior close of 79.63. 

RBI reference rate was fixed at 79.70 on 12/08. Aug USD/INR closed at 79.84, gain of 11 ps for USD as compared to prior day’s close of 79.73. Aug Euro/INR closed at 82.13, GBP/INR at 96.86 and Yen/INR at 59.72. USDINR fwd premia was trading at around 3.02% p.a.  FX reserves stands at USD 573.85 bn as on July 29 th.

In Aug till date FII’S have net bought Rs 18733 Cr of Equities in Cash segment and have bought Rs 2037 Cr of debt till date. In this Calendar Year, FII’S have sold close to Rs 1.77 lac Cr worth of Equities. 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 127 points y’day (0.72%) y’day. DOW climbed 239 points (0.71%). Nikkei declined 0.01% and Hang Seng declined 1.05%.

Euro is now at 1.0176, Pound at 1.2112, Yen at 134.14.

Commodities: Gold is now at USD 1790 and WT1Crude at USD 87/Brent at USD 92.

Interest rates: USD 10 Yr yield is at 2.82% and 3 m libor closed at 2.92%. Indian 10 yr benchmark yield closed at 7.28%.

Economic news: Indian Equity markets continued to climb higher tracking Global markets. Focus is on US FOMC minutes and retail sales.

Data highlights: – US building permits climbed to 1.67 mn and housing starts dipped to 1.45 mn, industrial production climbed 0.6% m/m.

-EU and German Zew surveys declined to -54.9 and -55.3 respectively.

-UK pay rolled employment increased by 73k, or 0.2% mom, in July

Wednesday’s calendar : – US retail sales and FOMC minutes

-EU flash GDP

-UK CPI, PPI and RPI

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 79.62. 50 day moving average is at 78.96.200 day moving average is at 76.33. Daily MACD is in sell zone. Important supports are at 79.20/78.90 and important resistances are at 79.80/80.06. Spot closed below its average level of the day.

Intraday supports and resistances for Aug contract are:

PP: 79.79, S1:79.74, S2:79.65, R1:79.89, R2:79.94.             

Hedging strategy: Hedging decisions be taken according to comfort and accounting rates.

However on directional basis, suggest the following:

USDINR Exports can be hedged near 79.70 levels. Nearby imports can be hedged at 78.85/78.50.

CROSS CURRENCY TECHNICALS:

EURO/USD: The pair is below major moving averages. Major resistance is at 1.0270/1.0450. Next major support is at 0.9935. Daily MACD is in buy zone, implying an important bottom at 0.9935. Weekly MACD is in sell zone, implying important top at 1.1498.

GBP/USD: The pair is below 50 and 200 day moving averages. Daily MACD is in buy zone, implying important bottom at 1.1750 and weekly MACD is in sell zone, implying important top at 1.3730. Important support is at 1.2040/1.1890. Important resistance is at 1.2245/1.2450.

USD/YEN: The pair is above 50 and 200 day moving averages. Daily MACD is in sell zone, implying important top at 139.40. Important support is at 130.50. Major resistance is at 139.40 with intermediate resistances at 135.50/137.50.

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