Oct 17, 2016 11:58 AM IST IST | Source: Moneycontrol.com
Buy US$INR October Fut; target of 67.05 - 67.25: ICICIdirect
ICICIdirect.com has expect the US dollar to find buying support on decline against the rupee. Utilise declines in the US$/INR October contract to buy target of 67.05 - 67.25.
ICICIdirect.com's report on currency
• 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.
• 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.
|US$INR October futures contract (NSE)||View: Bullish on US$INR|
|Buy US$INR in the range of 66.75-66.85||Market Lot: US$1000|
|Target: 67.05 - 67.25||Stop Loss: 66.65|
|S1/ S2: 66.70/66.50||R1/R2:67.00/67.20|
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.