Buy USDINR; target of 65.70 - 65.80: ICICI Direct
ICICI Direct expects US dollar to find supports at lower levels. Utilise downsides in the pair to go long on the US$INR.
ICICI Direct's currency report on USDINR
The rupee posted its biggest weekly rise in more than a year against the dollar, as a decisive win in a key state in favour of the part at the Centre and the US Federal Reserve’s hint of a gradual pace of future rate hikes boosted risk appetite • The US dollar fell further against major currencies as the JPY and pound Sterling rallied post a host of central bank meetings. US June interest rate hike prospects have fallen since the Fed raised interest rates in the March meeting. The pound rallied on prospects of rising inflation and expectation of earlier-than -expected pullback of stimulus.Equity
Equity benchmarks ended on a flat note on Friday after clocking fresh highs in the opening session as investors booked profit after the strong rally during the week • The Sensex gained 63 points or 0.21% to 29648 while the Nifty added just 6 points to settle at 9160 • Broader markets ended on a mixed note as the BSE midcap index was up 0.09% while the small cap index settled a tad lower, down 0.14% for the day. As a result, the overall market breadth was marginally favouring declines with A/D ratio of 1:1.27 on the BSE.US$/INR derivatives strategy
In the currency futures market, the most traded dollar-rupee March contract on the NSE ended at 65.56. The March contract open interest fell 0.09% from the previous day • April contract open interest rose 6.77% from the previous day • We expect the US dollar to find supports at lower levels. Utilise downsides in the pair to go long on the US$INR pair.
|US$INR March futures contract (NSE)||View: Bullish on US$INR|
|Buy US$INR in the range of 65.40 - 65.50||Market Lot: US$1000|
|Target: 65.70 / 65.80||Stop Loss: 65.30|
|S1/ S2: 65.50 / 65.30||R1/R2:65.80 /65.90|
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