USDINR opened at 75.77 y’day and the pair traded in the 75.57-75.86 range. Spot USDINR closed at 75.71, gain of 37 ps for USD as against prior close of 75.34. RBI reference rate was fixed at 75.72 on 02/03. Mar USD/INR closed at 75.92, gain of 33 ps for USD as compared to prior day’s close of 75.59. Mar Euro/INR closed at 84.37, GBP/INR at 101.12 and Yen/INR at 65.88. USDINR fwd premia was trading at around 4.05% p.a.  

In Feb, FII’S have net sold Rs 25270 cr in Equity segment and have net sold Rs 2054 cr of debt. In this financial year, FII’S have net sold Rs 57891 Cr worth of Indian Equities and have bought Rs 4454 Cr worth of Indian debt. In 2020-21 financial Year, FII’S nett bought Rs 2,74,203 Cr of Equities and have sold Rs  42820 Cr in debt.

Benchmark Nifty declined 187 points (-1.12%) y’day. DOW climbed 596 points (1.79%). Nikkei declined -1.68% and Hang Seng declined -1.84% y’day.

Euro is now at 1.1099, Pound at 1.3384, Yen at 115.59.

Commodities: Gold is now at USD 1929 and WT1Crude at USD 112.70/Brent at USD 116.70.

Interest rates: USD 10 Yr yield is at 1.75% and 3 m libor closed at 0.29%. Indian 10 yr benchmark yield closed at 6.81%.

Economic news: Rupee opened lower at 75.77 as Geo political situation worsened and Crude oil rallied 10% to cross USD 108. RBI intervention stabilized USDINR pair.

European Central Bank (ECB) Vice President said that, “invasion of Ukraine by Russia will have an impact on the economy in the eurozone, will also have an impact on inflation.”

Federal Reserve chairman Jerome Powell confirmed investor expectations for a 25-basis points rate hike in March, and said the Fed would tread carefully in the wake of the Russia-Ukraine conflict. The Fed chief, however, didn’t rule out the possibility of a 50 basis hike at subsequent meetings if inflation continued to run hot.

Data highlights: – US ADP report showed that private sector added 475 k jobs in Feb.

-EU CPI climbed 5.8% y/y.

Thursday’s calendar: US ISM(non mfrg), factory orders and weekly jobless claims

-EU PMI(services) and PPI

-UK PMI(services)

Daily Support/Resistance table

MAJOR SUPPORTS/RESISTANCES AND TREND TABLE

Technicals: Spot closed above 200 day major moving averages.20 day moving average is at 75.04. 50 day moving average is at 74.78.200 day moving average is at 74.32. Daily MACD is in buy zone, implying bottom at 74.35. Important resistance is at 76.30 and important support is at 74.95. Spot closed at its average level of the day.

Intraday supports and resistances for Mar contract are:

PP: 75.92, S1:75.75, S2:75.60, R1:76.08, R2:76.24.             

Hedging strategy: Hedging decisions be taken according to comfort and accounting rates.

However on directional basis, suggest the following:

USDINR exports can be hedged at 75.50 +.

CROSS CURRENCY TECHNICALS:

EURO/USD: The pair is below major major moving averages. Major resistance is at 1.1485. Next major support is at 1. 11.. Daily MACD is in sell zone, implying an important top at 1.1485. Weekly MACD is in buy zone, implying important bottom at 1.1120.

GBP/USD: The pair is below all moving averages. Daily MACD is in sell zone, implying important top at 1.3650 and weekly MACD is in buy zone, implying important bottom at 1.3170. Important support is at 1.3275/1.3170. Important resistance is at 1.3485/1.3650

USD/YEN: The pair is above all major moving averages. Daily MACD is in buy zone, implying important bottom at 114.40. Next important resistance is at 116.35. Important support is at 114.40/113.50

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