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May 18, 2017 11:22 AM IST | Source: Moneycontrol.com

Sell US$INR; target of 64.20: ICICI Direct

ICICI Direct expects US$ to meet resistance at higher levels. Utilise upsides in the pair to go short on the US$INR pair.

Sell US$INR; target of 64.20: ICICI Direct

ICICI Direct's currency report on USDINR

Debt market

Government  bonds  ended  little  changed,  as  domestic  equity  indices continued to consolidate, amid political concerns in the US The benchmark 6.97% 2026 bond yield rose mildly to 6.68% from 6.67% in the previous session Yield on the US 10-year fell over 10-bps to 2.22% from 2.33% in the previous session

Forex (US$/INR)

The  rupee edged lower against the US$, as state-run banks  stepped up dollar  purchases, erasing gains from broad  US$  weakness caused by soft housing data and political turmoil in the US The US dollar declined  sharply due to rising political concerns  around the  US  President’s  alleged  sharing  of  information  with a Russian  minister. The US$JPY pair fell sharply over 2% on strong safe haven buying while reflation trades took a hit as market participants viewed the economic agenda while taking a backseat over the recent turn of events

US$/INR derivatives strategy

In the currency futures  market,  the  most  traded  dollar-rupee May contract on the NSE ended  at 64.25. The May contract open interest declined 4.89% from the previous day June contract open interest increased by 4.70% in the last session We expect the US$ to meet resistance at higher levels. Utilise upsides in the pair to go short on the US$INR pair

Intra-day strategy























US$INR May futures contract (NSE)View: Bearish on US$INR
Sell US$INR in the range of 64.60 - 64.70Market Lot: US$1000
Target: 64.30/ 64.20Stop Loss: 64.80
SupportResistance
S1/ S2: 64.40 / 64.20R1/R2:64.60 /64.80

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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