USDINR opened at 71.14 Y’day and the pair traded in the 71.02-71.21 range. Spot USDINR closed at 71.11, unchanged for USD as against prior close of 71.11. RBI reference rate was fixed at 71.09. Feb USD/INR closed at 71.33, unchanged for USD as compared to prior day’s close of 71.33. Feb Euro/INR closed at 81.75, GBP/INR at 93.86 and Yen/INR at 65.30. Rupee has declined 2 Rupees since its recent level of 69.20 traded on 7 th Jan. USDINR is staying within a range in the last few sessions, awaiting US Fed decision and Union budget proposals.
FII’S have sold Rs 3875 Cr of Indian Equities in Jan till date . FII’S have sold Rs 2244 Cr of Indian debt securities in Jan till date .
Benchmark Nifty closed flat y’day. DOW declined 52 points (0.21%) y’day. Nikkei climbed 0.08% and Hang seng declined 0.16% y’day.
Euro is now at 1.1440, Pound at 1.3094,Yen at 109.28.
Commodities: Gold is now at USD 1312 and WT1Crude at USD 53.20 /Brent at USD 61.10.
Interest rates: USD 10 Yr yield is at 2.712% and 3 m libor closed at 2.90%. Indian 10 yr benchmark yield closed at 7.32%.
Economic news: Union budget is keenly awaited. Fiscal deficit, tax reliefs and farm sector measures are in focus. Markets await US FOMC decision on Wednesday night and nonfarm payrolls release on Friday. US-China trade talks are underway to avert new and punitive US tariffs ahead of March 2 nd deadline.
Data highlights : US house price index climbed 4.7% y/y and consumer confidence dipped to 120.2.
Wednesday’s calendar: – US pending home sales, ADP employment report
-EU GDP, German Gfk consumer sentiment.
Daily Support/Resistance table
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
Technicals: Spot closed above 20,50 and 200 day moving averages but still below 100 day major moving average. 20 day moving average is at 70.76. 50 day moving average is at 70.75. 200 day moving average is at 69.60. Daily MACD is in buy zone, implying bottom at 69.20. Important support zone is at 70.50 and later at 70.10. Spot closed at its average level of the day.
Intra day supports and resistances for Jan contract are:
PP: 71.08,S1:70.94, S2:70.78, R1:71.24, R2:71.38
Hedging strategy for USD/INR: Hedging decisions be taken according to comfort and accounting rates.
CROSS CURRENCY TECHNICALS:
EURO/USD: The pair is below 200 day moving average. Next Major resistance is at 1.1570 and later at 1.17. Major support is at 1.1265/1.12. Daily MACD is in sell zone, implying an important top at 1.1572. Weekly MACD is in buy zone, implying important bottom at 1.1215.
GBP/USD: The pair is bullish and above all moving averages.Daily MACD is in buy zone, implying important bottom at 1.2440 and weekly MACD is in buy zone, implying important bottom at 1.2440. Important resistance is at 1.33. Important support is at 1.29 and later at 1.28.
USD/YEN: The pair is below major moving averages. Daily MACD is in buy zone, implying important bottom at 105. Next important resistance is at 111/112.