USDINR opened gap up at 75.71 y’day and the pair traded in the 75.63-75.81 range. Spot USDINR closed at 75.72 , gain of 62 ps for USD as against prior close of 75.10. RBI reference rate was fixed at 75.79 y’day. May USD/INR closed at 75.85, gain of 57 ps for USD as compared to prior day’s close of 75.28. May Euro/INR closed at 82.85, GBP/INR at 94.10 and Yen/INR at 70.97.
FII’S have nett sold Rs 3096 Cr of Indian Equities in April . FII’S have nett sold Rs 6241 Cr of Indian debt securities in April. In FY 19-20, FII’s have sold Rs 10200 Cr of Equities and 47393 cr of debt.
Benchmark Nifty declined 5.74% y’day. DOW climbed 26 points (0.11%) y’day. Nikkei declined 2.84 % and Hang seng declined 4.18% y’day.
Euro is now at 1.0914,Pound at 1.2464,Yen at 106.58.
Commodities: Gold is now at USD 1704 and WT1Crude at USD 21.80/Brent at USD 28.40.
Interest rates: USD 10 Yr yield is at 0.631% and 3 m libor closed at 0.89%. Indian 10 yr benchmark yield closed at 6.09%.
Economic news: US- China issues are at the forefront. US measures include blocking US funds from investing in Chinese stocks and tariff on Chinese imports. US is also seriously pursuing moving global supply chain out of China.
Data highlights : US factory orders declined -10.3% m/m.
-EU sentix investor confidence declikned to -41.8 and PMI(mfrg) dipped to 33.4.
Tuesday’s calendar:- US ISM(non mfrg)
Daily Support/Resistance table
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
Technicals: Spot closed above 200 day moving average. 20 day moving average is at 76.15. 50 day moving average is at 74.40.200 day moving average is at 71.66. Daily MACD is in sell zone, implying top at 76.90. Important support is at 74.90/74.40. Spot closed above its average level of the day.
Intra day supports and resistances for April contract are:
PP:75.87 ,S1:75.72, S2:75.60, R1:75.99, R2: 76.14
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 major moving average. Next Major resistance is at 1.1050 and later at 1.1150. Major support is at 1.0875 and later at 1.0725. Daily MACD is in buy zone, implying an important bottom at 1.0725. Weekly MACD is in sell zone, implying important top at 1.15.
GBP/USD: The pair has turned sideways and is between major moving averages.Daily MACD is in buy zone, implying important bottom at 1.2245 and weekly MACD is in sell zone, implying important top at 1.3515. Important resistance is at 1.2650/1.2820. Important support is at 1.2245 and later at 1.2165.
USD/YEN: The pair is below major moving averages. Daily MACD is in sell zone, implying important top at 109.40. Next important resistance is at 111.75. Important support is at 106.25/105.90