Moneycontrol
Aug 09, 2017 11:40 AM IST | Source: Moneycontrol.com

Sell USDINR; target of 63.80 - 63.75: ICICI Direct

According to ICICI Direct expect the USD to meet supply pressure at higher levels. Utilise up sides to go short on the USDINR pair.

Sell USDINR; target of 63.80 - 63.75: ICICI Direct

ICICI Direct 's research report on currency

Debt market

Government bon ds were little changed after state debt auctions, even as the market braces for more supply of debt later this week The GoI benchmark 6.79 % 202 7 bond yield was unchanged at 6. 4 6 % in the previous session Yield on the US 10 - y ear rose to 2.2 6 % from 2. 25 % in the previous session.

Forex (US$/INR)

The rupee rose  vs. the US$, as some Federal Reserve officials favoured  holding rates at current levels amid signs of subdued inflation in US US$ posted mild  gains against major currencies on the back of sharp  profit booking in Euro and British pound.  Risk escalation and war rhetoric between the US President and the North Korean leader weighed on risk sentiment. Japanese Yen rose sharply against all majors on the back of a sharp spike in safe haven demand. US$ will track developments in Korean peninsula ahead of Fed official’s speeches this week.

Strategy

In the currency futures market, the most traded dollar - rupee August contract on the NSE ended at 6 3. 80. The  August contract open interest  declined 13.18 % from the previous day September contract open interest  increased 3.92 % in the  previous session  We expect the US$ to meet supply pressure at higher levels. Utilise up sides to go short on the US$INR pair.

Intra-day strategy
US$INR August futures contract (NSE) View: Bearish on US$INR
Sell US$INR in the range of 63.97 - 64.07 Market Lot: US$1000
Target: 63.80 / 63.75 Stop Loss: 64.17
Support Resistance
S1/ S2: 63.80 / 63.70 R1/R2:64.00 /64.20

 

 

 

 

 

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.

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