Moneycontrol
Nov 30, 2016 09:38 AM IST | Source: Moneycontrol.com

Sell US$INR December Fut; target of 68.60 / 68.40: ICICIdirect

ICICIdirect.com has expect the US$ to meet supply pressure at higher levels. Utilise upsides in the dollar to go short on the US$INR December contract to Sell target of 68.60 / 68.40.



ICICIdirect.com's report on currency


Debt market

Government bonds ended higher as yields took a breather but most other sovereign debt fell for a third day after the central bank raised the cash reserve ratio to curb surging liquidity at banks The benchmark 6.97% bond maturing in 2026 ended at | 104.69 against | 104.65 the previous day The benchmark 6.97% 2026 bond yield fell to 6.32% from 6.33% in the previous day

Forex (US$/INR)

The rupee rose against the dollar as domestic equities gained for a third day, leading concerns about foreign fund outflows to subside. Also, the US$ index continue top consolidate aiding strength in rupee The US$ index rally continue to consolidate post recent surge. Strength in the British pound and euro continued to keep a US$ rally in check while weakness in the Japanese Yen continued due to expectations of rising monetary divergence

US$/INR derivatives strategy: Sell December Contract

In the currency futures market, the most traded dollar-rupee December contract on the NSE ended at 68.83. The December contract open interest fell 1.10% from the previous day

January contract open interest rose 0.85% from the previous day

We expect the US$ to meet supply pressure at higher levels. Utilise upsides in the dollar to go short on the US$INR pair


Intra-day strategy


US$INR December futures contract (NSE)View: Bearish on US$INR
Sell US$INR in the range of 68.85 - 68.95Market Lot: US$1000
Target: 68.60 / 68.40Stop Loss: 69.05
SupportResistance
S1/ S2: 68.65/68.45R1/R2:69.00/69.20








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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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