USDINR opened at 71.23 Y’day and the pair traded in the 71.21-71.38 range. Spot USDINR closed at 71.34 y’day, gain of 4 ps for USD as against prior close of 71.30. RBI reference rate was fixed at 71.26 y’day. Feb USD/INR closed at 71.41, gain of 3 ps for USD as compared to prior day’s close of 71.38. Feb Euro/INR closed at 78.05, GBP/INR at 92.76 and Yen/INR at 64.99.
FII’S nett sold Rs 1172 Cr of Indian Equities in Feb till date . FII’S have nett bought Rs 4248 Cr of Indian debt securities in Feb till date.
Benchmark Nifty climbed 0.77% y’day. DOW climbed 275 points( 0.75%) y’day. Nikkei climbed 0.74% and Hang seng climbed 0.87% y’day.
Euro is now at 1.0920,Pound at 1.2967,Yen at 109.89.
Commodities: Gold is now at USD 1576 and WT1Crude at USD 51.30/Brent at USD 55.85.
Interest rates: USD 10 Yr yield is at 1.605% and 3 m libor closed at 1.73%. Indian 10 yr benchmark yield closed at 6.48%.
Economic news: Indian CPI climbed 7.59% in Jan as against 7.35% in Dec. Food inflation last month was 13.63%.
IIP contracted 0.3% in Dec. Mfrg sector declined 1.2% vs 2.9% in Dec 2018. Mining sector output grew by 5.4%, compared to a contraction of 1% earlier.The IIP growth during April-December period of the current fiscal decelerated to 0.5% from 4.7% expansion in the same period of 2018-19.
Data highlights : EU industrial production declined -2.1% m/m.
Thursday’s calendar: – – US Weekly jobless claims and CPI.
Daily Support/Resistance table
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
Technicals: Spot closed above 200 day moving average. 20 day moving average is at 71.24. 50 day moving average is at 71.20.200 day moving average is at 70.39. Daily MACD is in sell zone, implying top at 71.65. Important support is at 71.10/70.73 and next important resistance is at 71.65. Spot closed above its average level of the day.
Intra day supports and resistances for Feb contract are:
PP: 71.38,S1:71.30, S2:71.21, R1:71.48, R2:71.55
Hedging strategy for USD/INR: Hedging decisions be taken according to comfort and accounting rates.
CROSS CURRENCY TECHNICALS:
EURO/USD: The pair is below major moving averages. Next Major resistance is at 1.1240. Major support is at 1.0870. Daily MACD is in sell zone, implying an important top at 1.1240. Weekly MACD is in sell zone, implying important top at 1.1240.
GBP/USD: The pair has turned sideways but still above major moving averages.Daily MACD is in sell zone, implying important top at 1.3285 and weekly MACD is in sell zone, implying important top at 1.3515. Important resistance is at 1.3285. Important support is at 1.2780.
USD/YEN: The pair is above major moving averages. Daily MACD is in buy zone, implying important bottom at 108.30. Next important resistance is at 110.30. Important support is at 108.50/107.70/ 106.50.