Moneycontrol
Oct 13, 2017 11:02 AM IST | Source: Moneycontrol.com

Sell USDINR; target of 64.90 - 64.85: ICICI Direct

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

Sell USDINR; target of 64.90 - 64.85: ICICI Direct

ICICI Direct's currency report on USDINR

Debt market

Government bon ds fell, as investors deferred purchases ahead of the key September inflation data. CPI growth fell to 3.28% against market expectation at 3.53%, which could support bonds as well as the rupee • The GoI benchmark 6.79 % 2027 bond yield rose to 6.75% from 6. 74 % in the previous session • Yield on the US 10 - y ear yield declined to 2.3 2 % from 2. 3 5 % in the previous session.

Forex (US$/INR)

The rupee rose to its highest in over a week against the US$, helped by  equity - related inflows and tracking the US currency’s overnight slide  after the Federal Reserve’s September meeting minutes reflected  policymakers’ concerns over weak inflation • The  US$  extended  losses against major currencies ahead of crucial  inflation data post the mixed  September employment data. Mixed signals from Fed officials on December interest rate has also weighed on US$. Pound jumped sharply from day’s lows near 1.314 as Brexit and politics continue to dominate landscape ahead of BoE policy meeting.

Strategy In the currency futures market, the near month dollar - rupee October contract on the NSE ended at 65.20. The October contract open interest declined 1 5.49 % from the previous day • November contract open interest  increased 1 3.23 % in the  previous session • We expect  the US$ to meet supply pressure at higher levels. Utilise up side in the pair to go short on he US$INR.

Intra-day strategy

US$INR October futures contract (NSE) View: Bearish on US$INR
Sell US$INR in the range of 65.10-65.20 Market Lot: US$1000
Target: 64.90 / 64.85 Stop Loss: 65.30
Support Resistance
S1/ S2: 65.08 / 64.88 R1/R2:65.15 /65.25
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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