Moneycontrol
Aug 11, 2017 11:38 AM IST | Source: Moneycontrol.com

Buy USDINR; target of 64.40 - 64.50: ICICI Direct

ICICI Direct expects USD to find supports at lower levels. Utilise downside in pair to go long on USDINR.

Buy USDINR; target of 64.40 - 64.50: ICICI Direct

ICICI Direct's currency report on USDINR

Debt market

Government bonds ended lower for a fourth day, as fresh supply from  an open market sale of debt and today’s weekly auction weighed on investor sentiment • The  GoI benchmark  6.79 % 2027 bond  yield rose to 6.49 % in the previous session • Yield on  the  US 10 - year fell to 2.2 0 % from  2. 25 % in the previous session.

Forex (US$/INR)

The rupee fell to its lowest in over a week against the US$ , in line with its  Asian peers , as shares continued to slide on risk aversion triggered by  growing tensions between North Korea and the US • US$  ell against major currencies as rising risk - off sentiment on account  of North Korea - US geopolitical escalation weighed on US$. Japanese Yen continue to rise sharply supported by safe haven buying while British pound was weighed by lower than expected economic data.

Strategy In the currency futures market, the most traded dollar - rupee August contract on the NSE ended at 64.22. The  August contract open interest  declined 14.16 % from the previous day • September contract open interest  increased 4.43 % in the  previous session • We expect  the US$ to find supports at  lower levels. Utilise downside in pair to go long on US$INR.

Intra-day strategy

US$INR August futures contract (NSE) View: Bullish on US$INR
Buy US$INR in the range of 64.10 -64.20 Market Lot: US$1000
Target: 64.40 / 64.50 Stop Loss: 64.00
Support Resistance
S1/ S2: 64.20 / 64.00 R1/R2:64.35 /64.55
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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