Tuesday, September 23, 2014 For Private Circulation Only

MAJOR CURRENCIES Currency Expiry High Low Close Change

USDINR Spot 60.93 60.74 60.93 0.08

USDINR Sep 61.15 60.825 60.9025 -0.01

EURINR Spot 78.23 77.97 78.21 0.12

EURINR Sep 78.4825 78.185 78.2325 -0.14

GBPINR Spot 99.73 99.106 99.681 0.58

GBPINR Sep 99.7425 99.37 99.415 -0.32

JPYINR Spot 56.03 55.69 55.98 0.20

JPYINR Sep 56.085 55.6825 56.0075 -0.13

News & Development

China’s flash HSBC/Markit manufacturing Purchasing Managers'

Index (PMI) likely straddled the boom-bust line of 50 in September,

the median forecast of 19 economists showed, dipping from

August's final PMI reading of 50.2.

European Central Bank President Mario Draghi renewed his plea

for governments to undertake more structural reforms to support

the euro zone economy on Monday.

US DOLLAR INDEX

The dollar index, a basket of six leading currencies traded against the

dollar, wobbled around unchanged. It was last up 0.01 percent after

briefly touching a high last seen during July 2010.

USDINR

The Indian rupee ended little changed on Monday after gaining in each

of the previous four sessions as investors turned more cautious a day

before a preliminary survey on China's manufacturing sector.

Worries about the health of China's economy have been a major drag

in emerging market assets over the past week, while uncertainty also

remains about the U.S. Federal Reserve's near-zero interest rate policy.

Meanwhile, the rupee is also likely to remain range-bound ahead of the

Reserve Bank of India's policy review on Sept. 30. Although the central

bank is widely expected to keep interest rates unchanged, markets will

focus on the tone of its statement.

Outlook

USDINR is likely to trade on the positive note on the back of

strengthening US economy and hint of earlier than expected interest

rate hike by the Fed.

MAJOR INDICES Index Close Change % Change

DJIA 17173 -107.06 -0.62%

NASDAQ 4061 -38.86 -0.95%

DAX 9750 -49.72 -0.51%

FTSE 6774 -64.29 -0.94%

HANGSN 23955 -350.67 -1.44%

NIKKIE 16321 253.60 1.58%

SENSEX 27207 116.32 0.43%

DOLLEX 84.75 0.02 0.02%

Investments (EQUITY) – 22nd Sep, 2014 (In Rs. Crores)

BUY SELL Net Investment

FII 2666.51 2852.92 -186.41

DII 1309.17 1277.68 31.49

Technical Outlook

USDINR Strategy S2 S1 Close R1 R2

Sep Buy @ S1 60.70 60.80 60.90 61 61.10

*Investors can use S2/R2 as Stop Loss/Target depending upon the strategy advised

Page 2

CURRENCY DAILY

EURINR

Euro zone consumer confidence fell 1.4 points month-on-month to -11.4

in September, undershooting market expectations, the European

Commission said in its first estimate on Monday. Economists polled by

Reuters had expected a decline to -10.5. For the whole of the 28-nation

European Union, consumer confidence fell 1.6 points to -8.0 in

September against August, the Commission said.

The European Central Bank stands ready to use additional

unconventional tools and tweak its existing efforts to spur inflation and

growth in the euro zone if needed, ECB President Mario Draghi said on

Monday.

Speaking to the economic and monetary affairs committee of the

European parliament, Draghi also said he expects more demand from

banks for its new ultra-long loan programme, known as TLTROs, when

the funding is offered again in December.

Outlook

We expect EURINR to trade on the negative note on the back of endless

stimulus from the ECB and foreign inflows into domestic markets.

Technical Outlook

EURINR Strategy S2 S1 Close R1 R2

Sep Sell @ R1 18.05 78.18 78.23 78.36 78.47

*Investors can use S2/R2 as Stop Loss/Target depending upon the strategy advised

GBPINR

Sterling rose against the dollar on Monday and inched back towards

recent two-year highs against the euro as investors refocused on

Britain's economic fundamentals and interest rate expectations after

Scotland's independence referendum.

Sterling overnight interbank average rates are pricing in the chance of a

first rate increase by the BoE in the spring of 2015. Analysts said

sterling stood to gain more against the euro and yen since both the

European Central Bank and the Bank of Japan are likely to stick with

ultra-loose monetary policies.

Outlook

We expect GBPINR to trade on the positive note on the back of

Scotland voted in a referendum to stay within the United Kingdom.

Technical Outlook

GBPINR Strategy S2 S1 Close R1 R2

Sep Buy @ S1 99 99.20 99.41 99.65 99.85

*Investors can use S2/R2 as Stop Loss/Target depending upon the strategy advised

Page 3

CURRENCY DAILY

DATE TIME (IST) COUNTRY ECONOMIC DATA CONSENSUS PREVIOUS IMPACT

Tue, Sep 23 5:00am US FOMC Member Kocherlakota Speaks Medium

Tue, Sep 23 7:15am CHINA HSBC Flash Manufacturing PMI 50 50.2 High

Tue, Sep 23 12:30pm EUR French Flash Manufacturing PMI 47.1 46.9 High

Tue, Sep 23 12:30pm EUR French Flash Services PMI 50.2 50.3 Medium

Tue, Sep 23 1:00pm EUR German Flash Manufacturing PMI 51.3 51.4 High

Tue, Sep 23 1:00pm EUR German Flash Services PMI 54.6 54.9 Medium

Tue, Sep 23 1:30pm EUR Flash Manufacturing PMI 50.6 50.7 Medium

Tue, Sep 23 1:30pm EUR Flash Services PMI 53.2 53.1 Medium

Tue, Sep 23 2:00pm UK BBA Mortgage Approvals 42.9K 42.8K Medium

Tue, Sep 23 2:00pm UK Public Sector Net Borrowing 10.3B -1.1B Medium

Tue, Sep 23 6:50pm US FOMC Member Powell Speaks Medium

Tue, Sep 23 11:30pm US FOMC Member Kocherlakota Speaks Medium

For Further Assistance Contact: - 022-40934000

Ashish Shah Tejas Nikhar Mohit Agarwal

AVP ashish.shah@sushilfinance.com

Sr. Research Analyst tejas.nikhar@sushilfinance.com

Research Analyst mohit.agarwal@sushilfinance.com

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