Moneycontrol
Apr 18, 2017 11:56 AM IST | Source: Moneycontrol.com

Buy USDINR; target of 64.75: ICICI Direct

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

Buy USDINR; target of 64.75: ICICI Direct

ICICI Direct's currency report on US$INR

Debt market
Government bonds ended lower for a second day, after the central bank sold long - duration treasury bills and announced three more such auctions over the next four weeks to absorb excess cash from banks The benchmark 6.97 % 202 6 bond yield  rose to 6. 8 5 % from 6. 82 % in the previous session Yield on the US10 - year rose mildly to 2.2 5 % in the previous session


Forex (US$/INR)

The rupee pared early gains to end lower against the US$, as dollar purchases by state - run banks and weak domestic equities wiped out  gains stemmed from weak US$ The US$  index fell further against major currencies as gains over JPY  were offset by losses against  the  Euro and GBP. US$JPY pair saw some  profit booking as risk aversion subsided following lower offensive from  the  US over North Korea. GBP and Euro gained as a far right anti - Euro French political party saw some of its support dipping recently

US$ US$/INR derivatives strategy
In the currency futures market, the most traded dollar - rupee April contract on the NSE ended at 6 4. 60 .The April contract open interest fell 3.5 5 % from the previous day May contract open interest rose 0. 1 4 % from the previous day We expect the US $ to find support at lower levels. Utilise down sides in the pair to go long on the US$INR pair

Intra-day strategy

US$INR April futures contract (NSE)View: Bullish on US$INR
Buy US$INR in the range of 64.35 - 64.45Market Lot: US$1000
Target: 64.75/ 64.85Stop Loss: 64.25
SupportResistance
S1/ S2: 64.50 / 64.30R1/R2:64.80 /65.00

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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