USDINR opened at 72.37 y’day and the pair traded in the 72.27-72.44 range. Spot USDINR closed at 72.35 , loss of 12 ps for USD as against prior close of 72.47. RBI reference rate was fixed at 72.36 on 22/02. Mar USD/INR closed at 72.64, loss of 20 ps for USD as compared to prior day’s close of 72.84. Mar Euro/INR closed at 88.35, GBP/INR at 102.50 and Yen/INR at 68.69.

FII’S nett bought Rs 26336 Cr of Indian Equities in Feb . FII’S nett sold Rs 692 Cr of Indian debt securities in Jan . In this financial year, FII’S have nett bought Rs 256983 Cr of Equities and have sold Rs  25886 Cr in debt. In FY 19-20, FII’s sold Rs 10200 Cr of Equities and 47393 cr of debt.

Benchmark Nifty climbed 1.86% y’day. DOW climbed 424 points(1.35%).Nikkei climbed 0.46% and Hang seng climbed 1.03% .

Euro is now at 1.2162,Pound at 1.4140,Yen at 106.06.      

Commodities: Gold is now at USD 1800 and WT1Crude at USD 63.30/Brent at USD 66.25.

Interest rates: USD 10 Yr yield is at 1.34% and 3 m libor closed at 0.23%. Indian 10 yr benchmark yield closed at 6.18%.

Economic news: RBI Governor said that liquidity is comfortable and added that many instruments are available to ensure ample liquidity at appropriate time. Equity trading was hit due to technical glitch in NSE platform. On late reopening, Nifty rallied as Govt announced lifting of ban on private sector banks in participating in Govt related transactions. PM said that Govt plans to monetise 100 underutilised an unutiised assets of Govt run PSU’S.

In his testimony before the Senate, Fed Chairman Jerome Powell cautioned that the economic recovery is uneven. He pledged to maintain sufficient support to achieving the employment and inflation targets.

Data highlights: – US new home sales

Thursday’s calendar: – US Weekly jobless claims, durables order and pending home sales.

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 72.80. 50 day moving average is at 73.11.200 day moving average is at 74.27. Daily MACD is in sell zone, implying top at 73.50. Important support is at 72.30 and important resistance is at 72.75/72.90 . Spot closed at its average level of the day.

Intra day supports and resistances for Mar contract are:

PP:72.64,S1:72.56, S2:72.50, R1:72.71, R2: 72.78.                        

Hedging strategy for USD/INR: Hedging decisions be taken according to comfort and accounting rates.

CROSS CURRENCY TECHNICALS:

EURO/USD: The pair is below 50 moving average, but above 100 and 200 day moving average. Major resistance is at 1.2150. Major support is at 1.1950. Daily MACD is in buy zone, implying an important bottom at 1.1950. 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 1.3565 and weekly MACD is  in buy zone, implying important bottom at 1.2675. Important support is at 1.3565 . Important resistance is at 1.4050.

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 104.40. Next important resistance is at 106.20. Important support is at 104.40/104.

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