Moneycontrol
Jun 16, 2017 11:42 AM IST | Source: Moneycontrol.com

Buy USDINR; target of 64.75 - 64.85: ICICI Direct

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

Buy USDINR; target of 64.75 - 64.85: ICICI Direct

ICICI Direct's currency report on USDINR

Debt market

Government bonds fell for the first time in three days, as investors  booked profit from recent gains, after a Federal Reserve rate  hike on  expected lines • The  GoI  benchmark  6.79 % 2027 bond  yield rose to 6.48% from 6.47% in the previous session • Yield on the US 10 - year rose to 2.16% from 2.13% in previous session

Forex (US$/INR)

The rupee ended sharply lower, unable to sustain opening gains. Weak equities and a hawkish Fed stance weighed on the rupee. BoE  also saw  rising dissent towards  an  interest rate increase, raising concerns on  future inflows in  emerging markets • The US$  recovered against major currencies  on the back of hawkish US  interest rate outlook amid a 25 - bps interest rate hike. US$JPY pair gained sharply while rising on increasing monetary policy deviation ahead of BoJ’s monetary meeting today. BoE kept its key interest rates unchanged while three MPC members voted for an imminent rate hike resulting in the pound gaining sharply

Strategy In the currency futures market, the most traded dollar - rupee June contract on the NSE ended at 64.62. The June contract open interest  declined 16.77 % from the  previous day • July contract open interest  declined 0.11% in the  previous session • We expect  the US$ to find supports at lower levels. Utilise down sides in the pair to go long on the US$INR pair.

Intra-day strategy

US$INR June futures contract (NSE) View: Bullish on US$INR
Buy US$INR in the range of 64.45 - 64.55 Market Lot: US$1000
Target: 64.75 / 64.85 Stop Loss: 64.35
Support Resistance
S1/ S2: 64.50 / 64.40 R1/R2:64.70 /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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