Moneycontrol
Sep 15, 2017 11:22 AM IST | Source: Moneycontrol.com

Sell USDINR; target of 63.98 - 63.88: ICICI Direct

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

Sell USDINR; target of 63.98 - 63.88: ICICI Direct

ICICI Direct's currency report on USDINR

Debt market  

Government bonds were little changed, as an open market sale of bonds  increased supply, even as investors remained cautious after August retail  inflation accelerated to a five-month high  • The GoI benchmark 6.79% 2027 bond yield was steady at 6.59% in the  previous session  • Yield on the US 10-year yield declined to 2.18% from 2.19% in the  previous session.

Forex (US$/INR)

The rupee fell to a more-than-one-week low against the US$, tracking  overnight gains due to uptick in US  treasury yields and strong producer  price data  • The US$ fell against major currencies as sharp gains in the British Pound  and safe haven demand for JPY weighed on the US$. BoE in its September monetary meeting hinted at earlier-than-expected rise in interest rates. Recent uptick in UK inflation data is positive for British Pound. US August CPI was higher at 1.9% beating estimates of 1.8%.

Strategy   In the currency futures market, the most traded dollar-rupee September contract on the NSE ended at 64.22. The September contract open interest declined 9.98% from the previous day • October contract open interest increased 3.53% in the previous session • We expect the US$ to meet resistance at higher levels. Utilise upside 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 64.20 - 64.30 Market Lot: US$1000
Target: 63.98 / 63.88 Stop Loss: 64.40
Support Resistance
S1/ S2: 64.10 / 64.00 R1/R2:64.25 /64.35
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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