Monday, December 12, 2011

Quick update - post IIP data

IIP data was bad; thus driving the equity and currency market down and bond market up.

USD/INR:

USD/INR moved into the resistance zone of 52.35-52.50 (low of 52.50). Our reco of yesterday to buy at 52.15-52.05 was good and today market halted just above the buy zone of 52.10-52.00 (high of 52.12). Now, the risk is for shift into higher range of 52.25-52.75.

NIFTY: Watch 4750-4850 range with bias for extension into 4700-4650

FX Premium:

3M eased below 5.75% (from recent high of 6%) and 12M finding support at 4.25%. Let us continue to watch 12M at 4.25-4.5% and 3M at 5.65-5.90%

EUR/USD: Looks heavy at the moment. Watch 1.3290-1.3410. Bias into 1.3250-1.3200.


Moses Harding

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