USDINR opened at 72.95 y’day and the pair traded in the 72.90-72.97 range. Spot USDINR closed at 72.96 , unchanged for USD as against prior close of 72.96. RBI reference rate was fixed at 72.93 on 03/02. Feb USD/INR closed at 73.13, gain of 2 ps for USD as compared to prior day’s close of 73.11. Feb Euro/INR closed at 87.78, GBP/INR at 99.35 and Yen/INR at 69.51.
FII’S nett bought Rs 18855 Cr of Indian Equities in Jan . FII’S nett sold Rs 3473 Cr of Indian debt securities in Jan . In this financial year, FII’S have nett bought Rs 230647 Cr of Equities and have sold Rs 25262 Cr in debt. In FY 19-20, FII’s sold Rs 10200 Cr of Equities and 47393 cr of debt.
Benchmark Nifty climbed 0.71% y’day. DOW climbed 332 points(1.08%).Nikkei declined 1.06% and Hang seng declined 0.66% .
Euro is now at 1.1965,Pound at 1.3684,Yen at 105.51.
Commodities: Gold is now at USD 1793 and WT1Crude at USD 56.60/Brent at USD 59.20.
Interest rates: USD 10 Yr yield is at 1.13% and 3 m libor closed at 0.23%. Indian 10 yr benchmark yield closed at 6.07%.
Economic news: RBI is expected to keep rates and policy stance steady at its policy announcement today. Indian Equities continued to climb higher for the fourth consecutive day. The rupee was steady. Fwd premia continued to remain higher at 4.9% p.a.
BoE kept monetary policy unchanged as widely expected. BOE pledged that, “if the outlook for inflation weakens, the Committee stands ready to take whatever additional action is necessary to achieve its remit.”
Also, “the Committee does not intend to tighten monetary policy at least until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2% inflation target sustainably.”
BOE added that the outlook for the economy remains “unusually uncertain”, depending on the “evolution of the pandemic,
Data highlights: – US weekly jobless claims dipped to 779k and factory orders climbed 1.1% m/m.
-EU retail sales climbed 2% m/m.
Friday’s calendar: -US non farm payrolls.
Daily Support/Resistance table
MAJOR SUPPORTS/RESISTANCES AND TREND TABLE
Technicals: Spot closed below 100 and 200 day moving average. 20 day moving average is at 73.08. 50 day moving average is at 73.39.200 day moving average is at 74.45. Daily MACD is in sell zone, implying top at 73.50. Important support is at 72.75 and important resistance is at 73.50 . Spot closed above its average level of the day.
Intra day supports and resistances for Feb contract are:
PP:73.09,S1:73.05, S2:72.98, R1:73.16, R2: 73.20.
Hedging strategy for USD/INR: Hedging decisions be taken according to comfort and accounting rates.
CROSS CURRENCY TECHNICALS:
EURO/USD: The pair is below 20 moving average, but still above 50 and 200 day moving average. Major resistance is at 1.2225/1.2345. Major support is at 1,2050/1.1950. Daily MACD is in sell zone, implying an important top at 1.2345. Weekly MACD is in buy zone, implying important bottom at 1.1610.
GBP/USD: The pair is above major moving averages. Daily MACD is in buy zone, implying important bottom at 1.3450 and weekly MACD is in buy zone, implying important bottom at 1.2675. Important support is at 1.3450/1.3330 . Important resistance is at 1.3760.
USD/YEN: The pair is above 50 day major moving average, but still below 200 day moving average . Daily MACD is in buy zone, implying important bottom at 102.60. Next important resistance is at 105.70. Important support is at 102.60.
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