USDINR opened lower at 70.50 y’day the pair traded in the 70.40-70.87 range. Spot USDINR closed at 70.80, gain of 9 ps for USD as against prior close of 70.71. RBI reference rate was fixed at 70.55. Feb USD/INR closed at 70.91, gain of 7 ps for USD as compared to prior day’s close of 70.84. Feb Euro/INR closed at 80.39, GBP/INR at 91.50 and Yen/INR at 64.17.
FII’S have bought Rs 2517 Cr of Indian Equities in Feb. FII’S have bought Rs 2013 Cr of Indian Equities in this calendar Year till date. FII’S have sold Rs 2699 Cr of Indian debt securities in Feb . FII’S have sold Rs 5300 Cr of Indian debt in this calendar year till date.
Benchmark Nifty declined 0.35% y’day. DOW climbed 117 points (0.46%) Y’day. Nikkei climbed 1.34% and Hang seng climbed 1.16 %. y’day.
Euro is now at 1.1269, Pound at 1.2856,Yen at 111.
Commodities: Gold is now at USD 1310 and WT1Crude at USD 54.05 /Brent at USD 63.78.
Interest rates: USD 10 Yr yield is at 2.708% and 3 m libor closed at 2.90%. Indian 10 yr benchmark yield closed at 7.36%.
Economic news: Risk appetite was the theme in Global Equity markets as US President weighed the option of extending deadline for imposing fresh tariff on Chinese products.
US CPI was in line with expectation, while UK CPI slowed to 2 year low.
Data highlights : – US Core CPI climbed 0.2% m/m.
-EU industrial production declined -0.9% m/m
-UK CPI climbed 1.8% y/y, RPI climbed 2.5% y/y and PPI(output) was flat m/m.
Thursday’s calendar: -US weekly jobless claims, retail sales and PPI
Daily Support/Resistance table
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
Technicals: Spot closed below 20,50 and 200 day moving averages but still above 200 day major moving average. 20 day moving average is at 71.23. 50 day moving average is at 70.86. 200 day moving average is at 70.15. Daily MACD is in sell zone, implying top at 71.84. Important support zone is at 70.20 . Spot closed above its average level of the day.
Intra day supports and resistances for Feb contract are:
PP: 70.80,S1:70.60, S2:70.30, R1:71.10, R2:71.30.
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 1.1520 and later at 1.1570. Major support is at 1.1265/1.12. Daily MACD is in sell zone, implying an important top at 1.1520. Weekly MACD is in buy zone, implying important bottom at 1.1215.
GBP/USD: The pair is bullish and trading between major moving averages.Daily MACD is in sell zone, implying important top at 1.3220 and weekly MACD is in buy zone, implying important bottom at 1.2440. Important resistance is at 1.3220. 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.