The Indian rupee appreciated marginally against the US dollar on Tuesday due to selling of dollars by exporters and banks, while upbeat domestic market sentiment provided support; however, outflows of foreign funds from equity sales by institutional investors limited gains in the currency. US job openings grew and French industrial production jumped in November, while the yen rose on risk aversion and higher Japanese consumer confidence. Technical analyses provided outlooks and trading recommendations for various currency pairs.

1. Currency Highlights
11th
Jan’2017
HighLights:
 Indian Rupee appreciated marginally to 68.18 on Tuesday’s
 US JOLTS Job Openings grew to 5.52 million in November
 French Industrial Production jumped by 2.2 percent in Nov
 Japan’s Consumer Confidence surged to 43.1-mark in Dec
Indian Rupee recovered from its low and appreciated marginally
around 3 paise to end at 68.18 against the US dollar on Tuesday. The
currency appreciated on account of selling of dollars from exporters
and banks. Further, upbeat domestic market sentiments led to posi-
tive movement in the currency.
However, outflow of foreign funds from selling in equities by the insti-
tutional investors capped gains in the currency. So far this year, for-
eign institutional investors sold $285.56 million in equity while
$112.26 million buy in debt. Investors were cautious ahead of the key
macro-economic data to be released on 12th and 16th Jan’17.
Indian Rupee moved in the range of 67.99 to 68.21 in Tuesday’s trade. The Reserve Bank of India (RBI) fixed reference rate for
the dollar was seen at 68.0641 and Euro stood at 72.1820 as on 10th Jan’17.
For the month of January 2017, FII outflows in equities totalled at Rs.3008.40 crores ($441.98 million) as on 10th January 2017.
Year to date basis, net capital outflows stood at Rs.3008.40 crores ($441.98 million) as on 10th January 2017.
US Dollar Index rose around 0.1 percent in Tuesday’s trading session due to favourable economic data from the country. Fur-
ther, rise in risk aversion in global market sentiments which led to increase in demand for the low yielding currency kept the
currency in positive territory.
US National Federation of Independent Business (NFIB) Small Business Index surged by 7.4 points to 105.8-mark in December
as against a rise of 98.4-level in November. Job Openings and Labor Turnover Summary (JOLTS) Job Openings grew to 5.52 mil-
lion in November with respect to 5.45 million in October.
Euro against dollar declined around 0.2 percent on Tuesday on account of strength in the dollar index along with weak global
market sentiments. However, sharp downside was cushioned as a result of favourable economic data from the region.
French Industrial Production jumped by 2.2 percent in November with respect to drop of 0.1 percent in October.
The Sterling Pound rose around 0.12 percent in Tuesday’s trade as a result of weak global market sentiments coupled with
stronger dollar.
The Japanese Yen against dollar appreciated around 0.22 percent in Tuesday’s trading session due to rise in risk aversion in
global market sentiments which led to increase in demand for the low yielding currency.
Japan’s Consumer Confidence surged by 2.2 points to 43.1-mark in December as against a rise of 40.9-level in November.
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
Last PrevCl. PriceChng PriceChng%
DollarIndex 101.99 101.85 0.14 0.14
USD/INR(Spot) 68.18 68.16 0.02 0.03
USD/INR(NseJan) 68.32 68.38 (0.06) (0.09)
EUR/INR(Spot) 72.15 71.99 0.16 0.22
EUR/INR(NseJan) 72.35 72.00 0.35 0.48
GBP/INR(Spot) 82.83 82.90 (0.07) (0.08)
GBP/INR(NseJan) 83.10 83.27 (0.17) (0.20)
JPY/INR(NseJan) 58.96 58.56 0.40 0.68
MarketHighlights

2. Technical View:
On daily chart, it has been observed that the JPYINR has
completed a Bullish Bat harmonic pattern at 57.55 levels
the coordinates of which are as follows:
Technical Parameter: XA of the leg from 56 to 67.90,AB
of the leg completed at 63.30 (i.e.38.20% of XA leg.), BC
of the leg completed at 67.50 (i.e. near 88.60% of AB leg)
and CD of the leg completed at 57.55 level. (i.e. 88% of
XA and 224% of BC leg).
On daily chart momentum indicator RSI is trading in
oversold zone which indicates up side momentum can
be seen in the prices.
In addition, momentum indicator MACD has shown posi-
tive crossover which suggest possibilities of rebound in
the prices on daily chart.
So for trading perspective, one could JPYINR buy in the
range of 58.80 with SL of 58.50 for target of 59 .40 lev-
els.
Pivot levels for the Day
Technical View:
The pair has been moving in its rising channel pattern
and prices have been taking support of its lower band of
channel pattern at 67.90 levels on hourly chart.
On hourly chart price has taken support of its 61.80%
Fibonacci retracement levels.
Moreover, prices have been trading above its 21 HSMA
which gives the sign of bullishness in the prices.
A momentum indicator RSI has been trading above 40
levels, which suggest further positive momentum can be
seen in the prices.
In addition, momentum indicator MACD has shown
positive crossover on hourly chart.
So for trading perspective, one could buy USDINR in
range 68.20 with SL of 68 for target of 68.60.
Currency Highlights
11th
Jan’2017
USDINR JPYINR
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
S3 S2 S1 Pivot R1 R2 R3
USDINR 67.84 68.05 68.19 68.26 68.40 68.47 68.68
JPYINR 58.52 58.72 58.84 58.92 59.04 59.12 59.32

3. Pivot levels for the Day
Currency Highlights
11th
Jan’2017
GBPINR EURINR
Technical View:
The price has taken support of its horizontal trend line
at 71.80 levels on daily chart. The EURINR pair has also
taken support of its falling trend line at 70.70 levels on
daily chart.
The pair has been trading above its 21 DSMA on daily
chart, which suggest further bullishness can be seen in
the prices.
On daily chart momentum oscillator RSI has been mov-
ing above 50 levels on daily chart, which suggest bullish-
ness in the prices.
A momentum indicator MACD has shown positive cross-
over on daily chart, which support our bullish view to
the prices.
For now we can expect prices should move higher to-
wards 72.80 levels in the coming trading session.
Technical View:
The price has been trading in inverted head and shoul-
der formation and prices ay test its neckline at 85 levels
on hourly chart.
The price have shown breakout its horizontal line at 84
levels on hourly chart.
Moreover, prices have been trading above 21 HSMA,
which suggest short term trend looks positive.
Moreover, momentum indicator MACD has given posi-
tive cross over on hourly chart, which gives the sign of
bullishness in the prices.
The momentum indictor RSI has been trading above 45
levels on hourly chart, which suggest the possibilities of
further rebound in the prices.
For now we expect prices should move higher towards
83.80 levels coming trading sessions.
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
S3 S2 S1 Pivot R1 R2 R3
GBPINR 82.07 82.53 82.81 82.99 83.27 83.45 83.91
EURINR 71.97 72.18 72.27 72.39 72.48 72.60 72.81

4. Currency Highlights
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
11th
Jan’2017
Economic Indicators
Date Time Data Prior Expected Impact
11.01.17 03:00 AM Manufacturing Production m/m -0.9% 0.6% Actual > Forecast = Good for
currency; GBPINR
11.01.17 09:00 AM Crude Oil Inventories -7.1M

5. Currency Highlights
11th
Jan’2017
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual Funds
Anish Vyas
Digitally signed by Anish Vyas
DN: cn=Anish Vyas, o=Choice Merchandise
Broking Pvt. Ltd, ou=Sr. Research Associate,
email=anish.vyas@choiceindia.com, c=IN
Date: 2017.01.11 09:09:16 +05'30'