Moneycontrol
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.

Buy USDINR; target of 67.30 - 67.50: ICICI Direct

ICICI Direct's report on currency

Debt market  
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  


Forex (US$/INR)  
The rupee fell to a one-week low against the US$, 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   


Intra-day strategy

US$INR February futures contract (NSE)View: Bullish on US$INR
Buy US$INR in the range of 66.95-67.05Market Lot: US$1000
Target: 67.30 / 67.50Stop Loss: 66.85
SupportResistance
S1/ S2: 67.00 / 66.80R1/R2:67.35 /67.55







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