Feb 17, 2017 10:45 AM IST | Source: Moneycontrol.com
Buy USDINR; target of 67.30 - 67.50: ICICI Direct
ICICI Direct expects US dollar to gain support at lower levels. Utilise downsides in the dollar to go long on the US$INR pair. Buy February Futures with a target of 67.30 - 67.50.
ICICI Direct's report on currency
Government bonds ended higher for a second session, on value buying and repurchase of securities • The benchmark 6.97% 2026 bond yield fell to 6.85% from 6.86% in the previous day • Yield on the US 10-year fell to 2.45% from 2.49% in the previous day as strong US economic data and rate hike sentiments continued to keep yields in a narrow range
The rupee fell to a one-week low against the US$, as banks stepped up purchases of the US currency while a rise in March US interest rate hike probability to almost 44% from 28% is weighing on the rupee • The US$ fell against major currencies undermined by an uptick in recent US economic data. US January housing starts and build permits data was higher-than-expected. US$JPY pair continued to see profit booking as a rise in JGB yields could make BoJ step down purchases supporting the Japanese Yen
US$/INR derivatives strategy
In the currency futures market, the most traded dollar-rupee February contract on the NSE ended at 67.11. The February contract open interest fell 4.96% from the previous day • March contract open interest rose 9.02% from previous day • We expect the US dollar to gain support at lower levels. Utilise downsides in the dollar to go long on the US$INR pair
|US$INR February futures contract (NSE)||View: Bullish on US$INR|
|Buy US$INR in the range of 66.95-67.05||Market Lot: US$1000|
|Target: 67.30 / 67.50||Stop Loss: 66.85|
|S1/ S2: 67.00 / 66.80||R1/R2:67.35 /67.55|
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