Moneycontrol
Jun 20, 2017 10:58 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 up sides 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 rose for the first time in three sessions, as low US treasury yields supported emerging - market debt due to attractive yield • The GoI benchmark 6.79% 2027 bond yield fell to 6. 4 7 % from 6.49% in the previous session • Yield on the US 10 - year declined to 2.19% from 2.15% in the previous session.

Forex (US$/INR)

The rupee remained in a narrow range as strong gains in domestic  equities help offset interest rate hike sentiment in the US$ • The US$  rose against major  currencies gauged from a  rise in  the  dollar  index. US$ gained sharply against Japanese Yen underpinned by recent Fed interest rate hike while B o J vowed to maintain easy monetary policy.  The euro continue to struggle near resistance at the 1.12 area in the backdrop of Brexit negotiations.

Strategy In the currency futures market, the most traded dollar - rupee June contract on the NSE ended at 64.50. The  June contract open interest  declined 7.15% from the previous day • July contract open interest  increased 7.91% in the previous session • We expect  the US$ to  find  resistance at higher levels. Utilise up sides 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 64.58 - 64.68 Market Lot: US$1000
Target: 64.30 / 64.20 Stop Loss: 64.78
Support Resistance
S1/ S2: 64.45 / 64.25 R1/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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