USDINR opened at 73.96 y’day and the pair traded in the 73.92-74.41 range. Spot USDINR closed at 74.23 , loss of 1 ps for USD as against prior close of 74.24. RBI reference rate was fixed at 74.17 y’day. March USD/INR closed at 74.41, gain of 1 ps for USD as compared to prior day’s close of 74.40. March Euro/INR closed at 81.70, GBP/INR at 88.80 and Yen/INR at 69.22.
FII’S nett sold Rs 21435 Cr of Indian Equities in March till date . FII’S have nett sold Rs 11784 Cr of Indian debt securities in March till date.
Benchmark Nifty declined 5.56% y’day. DOW declined 1338 points (6.3%) y’day. Nikkei declined 1.68% and Hang seng declined 4.18% y’day.
Euro is now at 1.09,Pound at 1.1514,Yen at 108.86.
Commodities: Gold is now at USD 1489 and WT1Crude at USD 22.80/Brent at USD 26.10.
Interest rates: USD 10 Yr yield is at 1.218% and 3 m libor closed at 0.84%. Indian 10 yr benchmark yield closed at 6.30%.
Economic news: European Central Bank kicked off a 750 billion euro ($820 billion) emergency bond purchase scheme after an unscheduled meeting on Wednesday. Global markets came under pressure and Oil declined steeply even as US is considering 1 trn stimulus package. Neither fiscal nor monetary policy is able to reverse sentiment which is badly affected by Corona pandemic. It is estimated that 2 lac people are affected by Corona virus.
Data highlights : – US building permits dipped to 1.46 mn and housing starts climbed to 1.6 mn.
-EU CPI was finalised at 1.2% y/y.
Thursday’s calendar:- US weekly jobless claims and phily fed survey.
Daily Support/Resistance table
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
Technicals: Spot closed above 200 day moving average. 20 day moving average is at 72.93. 50 day moving average is at 71.93.200 day moving average is at 70.70. Daily MACD is in buy zone, implying bottom at 70.73. Important support is at 73.80/73.55 and next important resistance is at 74.50. Spot closed above its average level of the day.
Intra day supports and resistances for March contract are:
PP: 74.34,S1:74.12, S2:73.84, R1:74.62, R2:74.84
Hedging strategy for USD/INR: Hedging decisions be taken according to comfort and accounting rates.
CROSS CURRENCY TECHNICALS:
EURO/USD: The pair is above major moving averages. Next Major resistance is at 1.15. Major support is at 1.1060 and later at 1.0970. Daily MACD is in buy zone, implying an important bottom at 1.0775. Weekly MACD is in buy zone, implying important bottom at 1.0775.
GBP/USD: The pair has turned bearish and below major moving averages.Daily MACD is in sell zone, implying important top at 1.32 and weekly MACD is in sell zone, implying important top at 1.3515. Important resistance is at 1.2770. Important support is at 1.22/1.1960.
USD/YEN: The pair is below major moving averages. Daily MACD is in sell zone, implying important top at 112.20. Next important resistance is at 109. Important support is at 106 and later at 101.20.