Oct 17, 2016 11:58 AM IST | Source:

Buy US$INR October Fut; target of 67.05 - 67.25: ICICIdirect has expect the US dollar to find buying support on decline against the rupee. Utilise declines in the US$/INR October contract to buy target of 67.05 - 67.25.'s report on currency


Debt market  

• Government bonds ended lower for  a second consecutive session, as  investors booked profits after retail inflation eased to a 13-month low while weak global risk sentiment also hurt demand  • The benchmark 6.97% bond maturing in 2026 ended at | 101.54 against  the previous close of | 101.70  • The benchmark 6.97% 2026 bond yield ro se to 6.75% on Friday from  6.73% in its previous close.  

Forex (US$/INR)  

• The rupee logged its biggest single-session gain in two weeks against  the dollar, supported by foreign bank’s dollar sales and improved  domestic sentiment after softer-than-expected retail inflation raised  hopes of another rate cut  • The dollar index ended higher at  98.02, up almost 0.52%, at a seven  month high as strength in US September retail sales amid a growing rate  hike probability in December supp orted US$ against  most currencies.  

US$/INR derivatives strategy: Buy October Contract  

• In the currency futures market, the  most traded dollar-rupee October  contract on the NSE ended at 66.82.  The October contract open interest  fell 7.82% from the previous day  • November contract open interest rose 2.53% from the previous day  • We expect the US dollar to gain support at lower levels. Utilise  downsides in the dollar to go long on the US$INR pair.    

Intra-day strategy

US$INR October futures contract (NSE)View: Bullish on US$INR
Buy US$INR in the range of 66.75-66.85Market Lot: US$1000
Target: 67.05 - 67.25Stop Loss: 66.65
S1/ S2: 66.70/66.50R1/R2:67.00/67.20

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