Moneycontrol
Oct 12, 2017 10:32 AM IST | Source: Moneycontrol.com

Sell USDINR; target of 65.15 - 65.10: ICICI Direct

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

Sell USDINR; target of 65.15 - 65.10: ICICI Direct

ICICI Direct's currency report on USDINR

Debt market

Government bon ds were little changed, as investors consolidated positions ahead of the release of September inflation data today • The GoI benchmark 6.79 % 2027 bond yield was steady at 6. 74 % in the previous session • Yield on the US 10 - year yield declined to 2.35% from 2.36 % in the previous session.

Forex (US$/INR)

The rupee rose for a third straight day. The US$ weakened after US President Donald Trump’s twitter clash with a fellow Republican Senator  over the  government’s tax overhaul plans • The US$  extended losses against major currencies post Fed’s monetary policy meeting minutes .  The Fed raised concerns on inflation growth although a December interest rate hike remain intact. This led to profit booking in US$ and raised concerns on the future pace of Fed rate hikes.  Euro jumped to 1.19 level on a weaker US$ and waning fears of Catalonia region’s independence.

Strategy

In the currency futures market, the near month dollar - rupee October contract on the NSE ended at 65.29. The October contract open interest  declined 14.50 % from the previous day • November contract open interest  increased 12.62 % in the  previous session • We expect  the US$ to meet supply pressure at higher levels. Utilise upside in the pair to go short on the US$INR.

Intra-day strategy
US$INR October futures contract (NSE) View: Bearish on US$INR
Sell US$INR in the range of 65.34 -65.42 Market Lot: US$1000
Target: 65.15 / 65.10 Stop Loss: 65.55
Support Resistance
S1/ S2: 65.25 / 65.05 R1/R2:65.35 /65.55

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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