Moneycontrol
Aug 10, 2017 10:47 AM IST | Source: Moneycontrol.com

Sell USDINR; target of 63.85 - 63.75: ICICI Direct

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

Sell USDINR; target of 63.85 - 63.75: ICICI Direct

ICICI Direct's currency report on USDINR

Debt market

Government bonds fell as a rise in domestic yields on the back of geo - political risk escalation along with expectations of a rise in domestic inflation weighed on debt • The GoI benchmark 6.79 % 2027 bond yield rose to 6. 47% in the previous session • Yield on the US 10 - year fell to 2.2 5 % from 2. 26 % in the previous session.

Forex (US$/INR)

The rupee  weakened sharply against US$ on the  back of profit booking  in  domestic equities  along with escalation in geo - political risk weighing  on  emerging currencies, including rupee • US$  fell against major currencies as gains over Euro were weighed by  losses against Japanese Yen and British Pound.  Rise in geo - political risks led to a spike in Japanese Yen, which could see short closure in Japanese Yen.  Forex markets remain on the edge amid geo - political risks and US political concerns around the President.

Strategy In the currency futures market, the most traded dollar - rupee August contract on the NSE ended at 63.99. The August contract open interest  declined 7.70 % from the previous day • September contract open interest  increased 1.57 % 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 64.00-64.10 Market Lot: US$1000
Target: 63.85 / 63.75 Stop Loss: 64.20
Support Resistance
S1/ S2: 63.90 / 63.80 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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