USDINR opened at 75.58 y’day and the pair traded in the 75.54-75.78 range. Spot USDINR closed at 75.74 , gain of 19 ps for USD as against prior close of 75.55. RBI reference rate was fixed at 75.68 y’day. May USD/INR closed at 75.93, gain of 21 ps for USD as compared to prior day’s close of 75.72. May Euro/INR closed at 82.12, GBP/INR at 93.54 and Yen/INR at 70.75.
FII’S have nett bought Rs 15864 Cr of Indian Equities in May . This is due to block deal in HUL shares through book buiding process. FII’S have nett sold Rs 541 Cr of Indian debt securities in May. In FY 19-20, FII’s have sold Rs 10200 Cr of Equities and 47393 cr of debt.
Benchmark Nifty declined 0.13% y’day. DOW declined 109 points (0.45%) y’day. Nikkei climbed 1.05% and Hang seng climbed 1.53% y’day.
Euro is now at 1.0796,Pound at 1.2311,Yen at 107.47.
Commodities: Gold is now at USD 1698 and WT1Crude at USD 24.50/Brent at USD 30.
Interest rates: USD 10 Yr yield is at 0.697% and 3 m libor closed at 0.44%. Indian 10 yr benchmark yield closed at 6.16%.
Economic news: Govt of India announced Rs 12 lac borrowing programme for this Year. This announcement implies that Govt is preparing Rs 4 lac Cr second stimulus measure. It has already announced Rs 1.7 lac cr. 10 Year G-SEC yield hardened to 6.21%. IIP and CPI data are awaited.
Data highlights : No major data release.
Tuesday’s calendar:- US 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 76.13. 50 day moving average is at 74.74.200 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 May contract are:
PP:75.83 ,S1:75.70, S2:75.48, R1:76.05, R2: 76.18
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 1.0725 and later at 1.0650. 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 sell zone, implying important top at 1.2650 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 106/105.10.