Moneycontrol
Jun 19, 2017 11:16 AM IST | Source: Moneycontrol.com

Sell USDINR; target of 64.30 - 64.20: ICICI Direct

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

Sell USDINR; target of 64.30 - 64.20: ICICI Direct

ICICI Direct's currency report on USDINR


Debt market

Government bonds fell for a second day, as investors sold debt to benefit from price gains early last week • The GoI benchmark 6. 79 % 2027 bond yield rose to 6. 49% from 6. 48% in the previous session • Yield on the US 10 - y ear declined to 2.15 % from 2.16% in previous session.

Forex (US$/INR)

The rupee posted its first weekly loss in four weeks against  the  US$ ,  as expectation of a third interest rate increase in the US this year remained  firm after  the  just concluded Fed Monetary meeting • The US$  fell against major currencies as dollar gains over Japanese Yen  were more than offset by losses in  the  British  pound and Euro. JPY fell  sharply  against most majors as  the  B o J maintained its easy  monetary  policy leading  to  further widenig policy divergence between B o J and  other major  central banks.

Strategy
In the currency futures market, the most traded dollar - rupee June contract on the NSE ended at 64.52. The  June contract open interest  declined 1 3.45 % from the previous day • July contract open interest  increased 2.60 % in the  previous session • We expect  the US$ to find resistance at higher levels. Utilise upsides in the pair to go short on the US$INR pair.

Intra-day strategy

US$INR June futures contract (NSE)View: Bearish on US$INR
Sell US$INR in the range of 64.55 - 64.65Market Lot: US$1000
Target: 64.30 / 64.20Stop Loss: 64.75
SupportResistance
S1/ S2: 64.45 / 64.25R1/R2:64.70 /64.80

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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