Moneycontrol
Sep 13, 2017 11:18 AM IST | Source: Moneycontrol.com

Sell USDINR; target of 63.90 - 63.80: ICICI Direct

ICICI Direct expects USD to meet resistance at higher levels. Utilise up side in the pair to go short on the USDINR.

Sell USDINR; target of 63.90 - 63.80: ICICI Direct

ICICI Direct's currency report on USDINR

Debt market

Government bon ds ended little changed, as investors deferred purchases amid concerns that August’s retail inflation rate will likely accelerate, dentin g hopes of a near - term rate cut • The GoI benchmark 6.79 % 2027 bond yield declined to 6.5 5 % from 6.56 % in the previous session • Yield on the US 10 - year yield increased to 2.17 % from 2.13 % in the previous session.

Forex (US$/INR)

The rupee fell for a second day against the US$, tracking an overnight strength in the US currency amid easing geopolitical tensions while Hurricane Irma turned out to be less catastrophic than feared. Domestic August retail inflation rose to 3.36% while July IIP growth was at 1.2% against expectation of 1.6% • The  US$  remained almost unchanged as gains over Japanese Yen were  offset by losses against British Pound and Euro. GBP rose sharply following uptick in August CPI data. It has put focus on upcoming B o E’s monetary policy while JPY fell as risk - on sentiment recovered. CHF and JPY fell while Euro rose on the back of recovery in risk on sent.

Strategy In the currency futures market, the most traded dollar - rupee September contract on the NSE ended at 64.16. The September contract open interest  declined 4.43 % from the previous day • October contract open interest increased 6.28 % in the  previous session • We expect  the US$ to meet resistance at higher levels. Utilise up side in the pair to go short on the US$INR.

Intra-day strategy

US$INR September futures contract (NSE) View: Bearish on US$INR
Sell US$INR in the range of 64.12 - 64.22 Market Lot: US$1000
Target: 63.90 / 63.80 Stop Loss: 64.32
Support Resistance
S1/ S2: 63.95 / 63.85 R1/R2:64.15 /64.25
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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