Moneycontrol
May 19, 2017 11:42 AM IST | Source: Moneycontrol.com

Buy USDINR; target of 65.05 - 65.10: ICICI Direct

ICICI Direct expects US$ to find supports at lower levels. Utilise downsides in the pair to go long on the US$INR pair.

Buy USDINR; target of 65.05 - 65.10: ICICI Direct

ICICI Direct's currency report on USDINR

Debt market  

Government bonds ended little changed in lacklustre trade, as investors deferred purchases ahead of a weekly debt auction. Also, political  turmoil in the US could support bonds as yields remain on the backfoot  • The benchmark 6.97% 2026 bond yield was almost unchanged at 6.68%  in the previous session  • Yield on the US 10-year rose mildly  to 2.23% from 2.22% in the previous  session.

Forex (US$/INR)  

The rupee marked its biggest single-day fall in nearly 21 months against  US$, as political unrest in the US involving President Donald Trump  dented investors’ appetite for risk assets  • The US$ recovered slightly against major currencies due to profit  booking and recovery in yields. Even though US$ weakened against majors, it strengthened against most emerging currencies as recent political turmoil in the US has weighed on risk-on sentiment. We expect the US$ index to find supports above 96.50 level in the near term.

US$/INR derivatives strategy   In the currency futures market, the most traded dollar-rupee May contract on the NSE ended at 64.93. The May contract open interest declined 14.42% from the previous day • June contract open interest increased by 5.19% in the last session • We expect the US$ to find supports at lower levels. Utilise downsides in the pair to go long on the US$INR pair.

Intra-day strategy

US$INR May futures contract (NSE) View: Bullish on US$INR
Buy US$INR in the range of 64.60 - 64.70 Market Lot: US$1000
Target: 65.05 / 65.10 Stop Loss: 64.50
Support Resistance
S1/ S2: 64.60 / 64.40 R1/R2:64.90 /65.10
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.

Sections
Follow us on
Available On