Moneycontrol
Dec 02, 2016 12:37 PM IST | Source: Moneycontrol.com

Sell US$/INR; target of 68.00: ICICI Direct

ICICI Direct expects US$ to meet supply pressure at higher levels. Utilise upsides in the dollar to go short on the US$INR. Sell December Futures with a target of 68.00.


ICICI Direct's report on Currency

Debt market

Government bonds rose for a second day, as expectations the central bank may lower interest rates next week spurred demand. Market expectations are of 25-50 bps cut as demonetisation has led to groth disruption amid disinflationary expectations The benchmark 6.97% bond maturing in 2026 ended at | 105.47 against | 105.24 the previous day The benchmark 6.97% 2026 bond yield fell to 6.22% from 6.25% in the previous day.


Forex (US$/INR)

The rupee rose to a more-than-one-week high against the dollar, amid increasing expectations of interest rate cut along with consolidation seen in US$ ahead of crucial employment data The US$ index witnsessed profit booking at higher levels from recent surge.Traders remain in profit booking mode ahead of today’s US employment data and also Sunday’s Italy referendrum, which remains a risk event. GBP continue to gain from lower levels as near term Brexit news has already been priced in.


US$/INR derivatives strategy: Sell December Contract

In the currency futures market, the most traded dollar-rupee December contract on the NSE ended at 68.50. The December contract open interest fell 0.64% from the previous day.


January contract open interest rose 3.52% 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 68.50 - 68.60Market Lot: US$1000
Target: 68.20 / 68.00Stop Loss: 68.70
SupportResistance
S1/ S2: 68.35/68.15
R1/R2:68.55/68.75

 





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