Dec 02, 2016 12:37 PM IST 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$INR. Sell December Futures with a target of 68.00.
ICICI Direct's report on Currency
Government bonds rose for a second day, as expectations the central bank may lower interest rates next week spurred demand. Market expectations are of 25-50 bps cut as demonetisation has led to groth disruption amid disinflationary expectations The benchmark 6.97% bond maturing in 2026 ended at | 105.47 against | 105.24 the previous day The benchmark 6.97% 2026 bond yield fell to 6.22% from 6.25% in the previous day.
The rupee rose to a more-than-one-week high against the dollar, amid increasing expectations of interest rate cut along with consolidation seen in US$ 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$INR pair.
|US$INR December futures contract (NSE)||View: Bearish on US$INR|
|Sell US$INR in the range of 68.50 - 68.60||Market Lot: US$1000|
|Target: 68.20 / 68.00||Stop Loss: 68.70|
S1/ S2: 68.35/68.15
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.