Moneycontrol
Jul 14, 2017 11:43 AM IST | Source: Moneycontrol.com

Sell USDINR; target of 64.30 - 64.20: ICICI Direct

ICICI Direct expects US dollar to meet supply pressure 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  ended higher for a second day, after record - low  retail inflation in June increased expectations of an interest rate cut in the  August  monetary policy review meeting • The  GoI  benchmark  6.79 % 2027 bond  yield was steady at 6. 4 6 % from the previous session • Yield on the US 10 - year rose to 2.3 4 % from 2.3 2 % in the previous session.

Forex (US$/INR)

The rupee rose to a more - than - three - week high against the US$, after  the  US Federal Reserve Chair Janet Yellen’s comments  signalleda  gradual pace of rate increase while domestic June  retail inflation fell to  1.54% • The US$  traded  on  a  mixed note  against major currencies ahead of US  June  CPI data and central bank meeting lined up  next week. Dollar remain under pressure post US Fed chief Janet Yellen’s two - day testimony. Fed’s concerns on inflation growth raised the risk for US interest rate hike outlook.

Strategy In the currency futures market, the most traded dollar - rupee July contract on the NSE ended at 64.55. The July contract open interest increased 2.92 % from the previous day • August contract open interest increased 26.66 % in the  previous session • We expect  the US dollar to meet supply pressure at higher levels. Utilise up sides in the pair to go short on the US$INR pair.

Intra-day strategy

US$INR July futures contract (NSE) View: Bearish on US$INR
Sell US$INR in the range of 64.53 - 64.63 Market Lot: US$1000
Target: 64.30 / 64.20 Stop Loss: 64.73
Support Resistance
S1/ S2: 64.40 / 64.30
R1/R2:64.65 /64.75
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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