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R E E K L Y E P O R T
Buy on fear, sell on greed. The trend is your friend.

22 JULY - 26 JULY 2013

Buy on the rumor, sell on the news.

Amateurs want to be right.

Professionals want to make money.

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MARKET EVENTS Rupee defence drives up govt borrowing costs. India's forex reserves marginally up at $ 280.19 billion. Rupee gains on rumoured RBI intervention; second week of win. Sterling takes a breather after gains, outlook remains soft.

MARKET OUTLOOK
India's measures to protect its currency sent government borrowing costs sharply higher at a bond auction on Friday and RBI appeared to have intervened anew in the forex market in support of the rupee. Earlier, the embattled currency fell close to where it had been before a dramatic rescue mission by the RBI late on Monday, which sent bond yields surging and crimped the growth outlook for Asia's third largest economy. India's benchmark 10-year bond ended its worst week in four-and-a-half years, with the yield rising 40 basis points, disrupting government debt sales and undermining central bank efforts to mop up liquidity to make it harder to speculate against the rupee.

CURRENCIES
USDINR EURINR GBPINR JPYINR

PREVIOUS RATE
60.0950 78.3200 90.7125 60.4400

CURRENT RATE
59.5925 78.2100 90.9975 59.4300

KEY RATES As on 19/07/2013

% CHANGE
-0.83 -0.14 0.31 -1.67
REFERENCE RATE (USD) REPO RATE REVERSE REPO CRR INFLATION

59.7950 7.25% 6.25% 4% 4.86%

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USDINR

USDINR consolidated around 23.6% retracement last week and if correction will continue then 38.2 % retracement of 58.5000 will act as major support below which further bearishness will take it to deeper support levels. On higher side, 60.3100 is seen as immediate resistance above which strength can be said.

EURINR

EURINR on daily charts is consistently finding resistance of 78.8500 since last three weeks and if it is able to surpass this level then it may lead towards new highs. While on lower side 76.8000 is seen as major support. It needs to give a breakout from this consolidation zone to decide the

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PIVOT TABLE CURRENCIES

USDINR EURINR GBPINR JPYINR

S1
58.9500 77.5000 90.4000 58.4800

S2
58.3000 76.6000 89.6500 57.6500

S3
57.5000 75.7000 89.0000 56.8000

R1
60.3000 78.8500 91.5000 60.0000

R2
60.9000 79.6500 92.5500 60.8800

R3
61.5500 80.2000 93.6000 61.6000

INTERNATIONAL UPDATES
Canada Dollar Falls on Fed View to Trail Higher-Yielding Assets. U.S. Outlook Revised by Moodys to Stable on Deficit Reduction. Rupiah Leads Decline in Asian Currencies Amid China Slowdown.
BLOOMBERG ESTIMATE 5.27M PREVIOUS LEVEL 5.18M

DATE

TIME 7:30 PM 07:30 PM 06:00 PM 06:00

COUNTRY

EVENT Existing Home Sales New Home Sales Core Durable Goods Orders Unemployment

22-July-2013

US

24-July-2013

US

482k

476k

25-July-2013

US

0.5%

0.5%

25-July-2013

US

339k

334k

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