Currency Headlines

Currency Headlines

India Cuts Key Rate to Spur Growth as Inflation Cools
India lowered interest rates for the first time since April and cut the amount of deposits lenders must set aside as reserves, easing policy to revive growth as inflation cools and the government curbs the budget deficit.
The Reserve Bank of India reduced the repurchase rate to 7.75 percent from 8 percent. Governor Duvvuri Subbarao also cut the cash reserve ratio to 4 percent from 4.25 percent, effective Feb. 9, adding 180 billion rupees ($3.4 billion) into the banking system. Growth will be 5.5 percent in the year through March 2013, below an earlier estimate of 5.8 percent, the Reserve Bank said. That would be the slowest since 2002-2003. The prediction for benchmark inflation was cut to 6.8 percent from 7.5 percent.
Dollar Drops 2nd Day Versus Yen Before Fed Policy Meeting
The dollar weakened for a second day against the yen as investors pared expectations that the Federal Reserve will signal a change to its asset-buying program at the end of a two-day meeting tomorrow.
The U.S. currency fell against most of its 16 major counterparts before a report today that economists said will show confidence among U.S. consumers declined this month. South Korea’s won posted its biggest gain in more than four months, snapping a four-day drop. New Zealand’s dollar rose after a report showed the nation’s annual trade deficit narrowed. The euro slipped against all of its 16 major peers.
The dollar weakened for a second day against the yen as investors pared expectations that the Federal Reserve will signal a change to its asset-buying program at the end of a two-day meeting tomorrow.
The U.S. currency fell against most of its 16 major counterparts before a report today that economists said will show confidence among U.S. consumers declined this month. South Korea’s won posted its biggest gain in more than four months, snapping a four-day drop. New Zealand’s dollar rose after a report showed the nation’s annual trade deficit narrowed. The euro slipped against all of its 16 major peers.

TECHNICAL INSIGHT USDINR FEB 2013

The pair has shown strength at lower levels. Can be considered BUY on dips
Buy near 53.80 SL 53.60 TGT 54/54.25

EURINR FEB 2013
EURUSD has shown strength. This should be seen in EURINR also.
Buy near 72.35 SL 72.23 TGT 72.57/72.85

GBPINR FEB 2013
GBPINR looks to be on pull back rally. This pair can also be considered Buy on dips.
Buy near 84.72 SL 84.55 TGT 85/85.35

JPYINR FEB 2013
Given uncertainty in USDJPY globally, the pair can have Gap up OR Gap down open. Its better to take any call after watching the 1st hour of trade in USDINR

CURRENCY VIEW

TECHNICAL Impact
USD INR (JAN– Expiry)
US dollar is looking weak on charts hence selling is recommended in USD.
Sell around 53.9500 with a SL 54.1000 possible targets of 53.7500/53.6000/53.4500.

EUR INR (JAN – Expiry)
Euro might fall further as technically looking weak.
Sell below 71.3825 with a SL 71.4800 possible targets of 71.2000/71.1025/71.0100.
OR
Buy above 71.4800 with a SL 71.3825 possible targets of 71.6325/71.7500/72.8825.

Currency Headlines
Dollar falls before U.S consumer confidence figures.
Dollar has started falling against other markets peers before U.S consumer confidence figures which has increased the bearish bets on USD. Speculations have increased that the consumer confidence figures might disappoint the U.S investors. The dollar was little changed at $1.3458 per euro from $1.3456 in New York. It reached $1.3479 per euro on Jan. 25, the weakest level since Feb. 29, 2012. The dollar rose 0.1 percent to 90.90 yen. Japan’s currency fell 0.1 percent to 122.35 per euro. The MSCI Asia Pacific Index of stocks rose 0.7 percent, the most since Jan. 18.

Currency Headlines

Currency Headlines
Yen Rises as Traders Reduce Bearish Bets; Pound Drops
The yen rallied from its weakest level versus the dollar in 2 1/2 years as traders reduced bets the Japanese currency would keep falling after its recent slide.

The yen also strengthened as technical indicators signalled the declines may have been excessive. The dollar rose against most of its 16 major counterparts before a report that economists said will show U.S. durable goods orders climbed in December. The pound fell to its weakest level in 13 months versus the euro after data showed U.K. house prices stagnated in January. South Korea’s won slid amid bets the nation’s central bank will seek to weaken the currency. The yen appreciated 0.2 percent to 90.70 per dollar at 6:36 a.m. New York time, after reaching 91.26, the weakest level since June 2010. It climbed 0.3 percent to 121.95 per euro. 
Europe’s shared currency was little changed at $1.3447
Swiss Ministers Seek More Depreciation of ‘Strong’ Franc
Swiss ministers said the franc’s strength remains a concern even after its recent slide against the euro to the weakest in 20 months.

“Euphoria is misplaced” and more depreciation is needed, Finance Minister Eveline Widmer-Schlumpf told reporters at the World Economic Forum in Davos, Switzerland on Jan. 26. “The franc is still very strong.”
The Swiss National Bank imposed a ceiling of 1.20 francs to the euro in September 2011 to protect exporters as surging bond yields in Europe’s weakest economies pushed investors to seek the safest assets. The currency has since weakened as signs Europe’s debt crisis is easing sapped demand for havens.
While the franc has depreciated 3.2 percent against the euro this year, it’s still 9.1 percent stronger than the five- year average and 35 percent above an October 2007 low of 1.6828. The euro traded at 1.24588 francs at 11:16 a.m. in Zurich today.

Swiss Economy Minister Johann Schneider-Ammann echoed Widmer-Schlumpf’s comments, telling reporters the same day that the franc still is “too strong.” He said he “hopes it will devalue further.”
The prospects for the franc are “a question of how the euro develops,” Widmer-Schlumpf said. She said she also hopes the depreciation continues.

TECHNICAL INSIGHT
USD INR (Jan 13 – Expiry)
The pair remains in 53.40-54.20 range.
Wait for RBI Meet Outcome

EUR INR (Jan 13– Expiry)
EURUSD has shown strength. This should be seen in EURINR also.
Wait for RBI Meet Outcome

GBP INR (Jan 13 – Expiry)
GBPINR is in weak trend. Let the initial dust get settle, then look to Sell on rise.
Wait for RBI Meet Outcome

JPY INR (Jan 13 – Expiry)
Given uncertainty in USDJPY globally, the pair can have Gap up OR Gap down open. Its better to take any call after watching the 1st hour of trade in USDINR

RELIANCE ON CHART

Prices have consolidated earlier, for a long time within a Bullish Pattern, Symmetrical Triangle & have given a breakout {last month’s closing was above such breakout zone of 820}. Prices have given a breakout above another bullish pattern, Inverted Head & Shoulder Pattern with Neckline breakout point above 882 level & Upward target of 215 points, from such neckline level. Script have already made high of 955 levels {decent return}, now due for correction. SO enter on retracements.
BUY on retracements when fills GAP near 903 level with Stop below its previous Support zone,
mentioned. Book Profit near resistance zones.
CMP – 920.
RESISTANCE – 926, 934, 938 SUPPORT – 903, 894, 885

BHARTIARTL WITH CHART

Prices in the previous week have given breakout above the Neckline level of Inverted Head & Shoulder Pattern with Upward target of more than 100points from such level. In the current week prices have taken support of such neckline level & have risen Up. Now enter on retracements near support levels.
BUY on retracements, near Support Levels mentioned below. Use Stop below its previous Support zones. Book
Profit near resistance zones mentioned, below.
CMP – 357.
RESISTANCE – 359, 363, 384     SUPPORT – 352, 348, 345

TECHNICAL CURRENCY VIEW

Currency Headlines
Yen Gains From 2 1/2-Year Low as Stocks Drop
The yen strengthened from its weakest level against the dollar since June 2010 as Bank of Japan (8301) officials started a two-day policy meeting.

Japan’s currency has declined 5.9 percent versus the greenback in the past month on speculation the BOJ, under pressure from the government of new Prime Minister Shinzo Abe, will boost stimulus to lift the economy out of recession. Technical indicators signaled the yen’s drop may have been overdone and data showed traders became the least bearish on the currency in eight weeks. The Swiss franc advanced versus all but one of its 16 major peers.

“It’s hard to see what the BOJ could say tomorrow that would exceed market expectations,” said Daragh Maher, a currency strategist at HSBC Holdings Plc in London. “It’s a natural positioning ahead of the Bank of Japan’s meeting given the yen decline.”
The yen appreciated 0.7 percent to 89.51 per dollar at 6:43 a.m. New York time after depreciating to 90.25, the weakest since June 23, 2010. Japan’s currency gained 0.8 percent to 119.07 per euro. The dollar was little changed at $1.3302 per euro and the franc advanced 0.4 percent to 1.2398 per euro.

Pound Little Changed Versus Dollar as House Prices Rise
The pound snapped a three-day decline versus the euro after a report showed U.K. house prices rose for the first time in three months in January.
Sterling was little changed against the dollar, halting a six-day slide, before a report this week that analysts said will show the U.K. economy contracted in the fourth quarter of last year, tipping it back toward recession. Rightmove Plc said asking prices advanced 0.2 percent this month after dropping 3.3 percent in December. Gilts fell before the Debt Management Office sells 1.75 billion pounds ($2.8 billion) of 4 percent bonds due 2022 tomorrow.

“We’re seeing a bit of respite for the pound today,” said Melinda Burgess, a currency strategist at Royal Bank of Scotland Group Plc in London. “Although we still see weak fundamentals for sterling, we do think it will perform slightly better than the euro.”
The pound rose 0.1 percent to 83.83 pence per euro at 10:09 a.m. London time, after falling to 84.07 pence, the weakest since March 13. Sterling traded at $1.5882 after dropping to $1.5838, the lowest since Nov. 16.

TECHNICAL INSIGHT
USD INR (Jan 13 – Expiry)
The pair witnesses selling pressure on rise. Thus it is prudent to Sell on Rise.
Sell 54.02 SL 54.20 TGT 53.88/53.55

EUR INR (Jan 13– Expiry)
EURUSD has shown early signs of weakness. Given weakness in USDINR, EURINR can also be Sold on rise.
Sell 71.98 SL 72.12 TGT 71.7/71.4

GBP INR (Jan 13 – Expiry)
GBPINR is in weak trend. Let the initial dust get settle, then initiate any trade.

JPY INR (Jan 13 – Expiry)
JPYINR remains the weakest of 4 pairs. But given the very High “Beta” and it has gap Up OR Gap Down opening. Its moves are directly impacted by USDINR trend

TECHNICAL VIEW

TECHNICAL  VIEW

USD INR (Jan 13 – Expiry)
Buy USDINR @53.70 target 53.85/95/98/54.01 sl 53.65
The down move has been very sharp. The trend remains weak. But the chances are of "Gap Up" OR "Gap Down" openings.
We are not recommending any trade Pre-Open for today due to very high volatility expectations, when market opens.

EUR INR (Jan 13– Expiry)
EURUSD seems in strong uptrend. However, the bearish sentiments in USDINR will impact EURINR also.
Positions can be taken, once USDINR settles for a trend after 1st hour of trade.

GBP INR (Jan 13 – Expiry)
GBPINR is in weak trend. Let the initial dust get settle, then initiate any trade.

JPY INR (Jan 13 – Expiry)
JPYINR remains the weakest of 4 pairs. But given the very High “Beta” and it has gap Up OR Gap Down opening. Its moves are directly impacted by USDINR trend

ITC Ltd news

KOLKATA: Cigarettes-to-hotels conglomerate ITC LtdBSE 0.67 % said third-quarter net profit jumped 20.6 per cent year-on-year to Rs 2,051.85 crore on the back of strong growth in its FMCG and agricultural businesses.

ITC said on Friday net sales for the quarter-ended December rose 23.1 per cent from a year ago to Rs 7,627.07 crore. Net sales from its FMCG business grew 30 per cent while revenue from its agri-business was up 43 per cent.

Investors cheered the news, pushing ITC's shares up to Rs 289.7 in intra-day trade on the Bombay Stock Exchange on Friday. The scrip closed 0.67 per cent higher at Rs 287.05.

"The FMCG business and agribusiness is going to drive ITC's growth next quarter as well, since we do not expect any significant improvement in the cigarette business volume or the hotel business," said Kaustubh Pawaskar, research analyst
Revenue of the company's flagship cigarette business grew by more than 13 per cent to Rs 3,657.36 crore, despite a steep hike in taxation, which has led to 10-17 per cent increase in cigarette prices over the last two quarters.

In volume terms, ITC's cigarette business grew by 1.25 per cent, according to Religare Institutional Research.

Sharekhan's Pawaskar attributed the growth in revenue from the cigarette segment to the price hike and ruled out any significant jump in volumes in the next quarter.

ITC said its sub-65 mm cigarettes, launched to fight illegal trade and offer an entry-level pricing, has received favorable response and the company is now planning a nationwide rollout.

Net sales of the company's noncigarette FMCG business, which comprises packaged food and personal-care products, grew 30 per cent to Rs 1,782.70 crore. The segment reduced losses by 50 per cent to Rs 23.98 crore during the quarter.

ITC said sales growth of its packaged food business was led by its biscuit brand Sunfeast, Sunfeast Yippee! noodles and Bingo! range of snacks.

In personal care, the company strengthened its presence in soaps with a premium range and also launched newer products in the deodorants, body lotion, hand moisturiser and skin toner segments.

However, ITC's hotel business failed to make a significant recovery during the quarter. The company attributed this to the continuing weakness in the domestic and global economy and a significant addition of rooms in several markets.

Sales in this segment grew 11 per cent to Rs 309.46 crore, while profitability was down 45 per cent to Rs 55.49 crore.

Relaince Industries news--> 19 jan 2013

                                     



                                                                                                                                                                                              
India's largest company by market value Reliance IndustriesBSE 1.05 % could well see renewed interest from investors soon after a sustained period when the stock was languishing after the company cut back on its gas production and analysts were skeptical about its earnings growth. Its results for the quarter to December 2012 exceeded analysts expectations by a wide margin, powered by its refining business .
At Rs 5,502 crore, RIL's net profit in the third quarter was its third-best ever. That, too, when there has been an overall weakness in refining margins for the December quarter. RILBSE 1.05 % went on to post its highest-ever profits from this segment at Rs 3,615 crore. The gross refining margin was an impressive $9.6 per barrel. This not only bettered its year-ago number of $6.8, which was on expected lines, but also beat its September 2012 quarter number of $9.5, when most analysts had pegged their forecasts between $8.5 and $9 for the quarter.
In comparison, the performance of its two other major segments — petrochemicals and oil and gas — were dismal, just in line with market expectations. The petrochemicals segment faced margin pressure and posted a lower profit of 10% inspite of a 11% spurt in revenues. But the declining natural gas production from KG-D 6 led to a 32% drop in revenues and 54% drop in profits from the oil and gas segment.
The quarter was also marked by a reduced importance of other income in the overall profit of the company. From an average of 33% of pre-tax profits in the April-September 2012 period, the proportion of other income has dropped to 25%. A reduced tax provisioning at 19.7% of pre-tax profit compared to 22.6% in the year-ago period also contributed to the stellar performance.
RIL was also debt-free at end December 2012, with cash of . 80,962 crore, way higher than its Rs 72,266-crore debt. This despite using Rs 3,085 crore of cash for its share buyback programme. Analysts are not certain if this performance can be sustained.
For RIL's investors, the 24% y-o-y jump in net profit is a welcome breather after a fall in profits for the last four consecutive quarters. The December quarter show may well be the trigger for renewed investor interest in the company.

currency call update of 18 jan 2013

our currency usd sell call given @54.03 made low of 53.8225
20++ paisa profit  in intraday only

&

EURO sell call all target done, call given @72.23 made low 71.85
38++ paisa profit in intraday only


Total profit 58 paisa .

Example : If trade in only 10 lots in both USDINR & EURO  =>

USDINR => 10 lot *20 paisa =Rs. 2000 /-
EUROINR => 10 lot *38 paisa = Rs. 3800/-

                                                         TOTAL PROFIT =2000+3800 
                                                                                        =RS. 5800/-