Moneycontrol
Oct 09, 2017 11:20 AM IST | Source: Moneycontrol.com

Sell USDINR; target of 65.45 - 65.35: 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 65.45 - 65.35: ICICI Direct

ICICI Direct's currency report on USDINR

Debt market

Government bonds fell sharply this week, as investors sold notes after  the country’s rate - setting Monetary Policy Committee’s latest meeting  suggested little chance of near - term rate cuts • The  GoI benchmark  6.79 % 2027 bond yield rose to 6.76 % from 6.73% in the previous session • Yield on  the  US 10 - year yield  rose to 2.36 % from 2.35 % in  the  previous  session.

Forex (US$/INR)

The rupee fell for a fourth straight week against the US$, as a string of solid US economic data and tax cut plans amid growing bets o n a third Federal Reserve rate increase this year boosted US$ prospects • The US$ fell mildly against major currencies a s sharply lower - than - expected September employment data weighed on rate hike sentiments. US September payrolls contracted by 33000 rolls against expectation of addition of 80000 rolls. However, wage growth was higher at 2.9% against expectation of 2.5%. Lower employment data along with a change in the Fed chair would keep the US$ in focus in the near term.  The British pound continue d to slide as the UK Prime Minister is seen losing support amid Brexit negotiations.

Strategy In the currency futures market, the near month dollar - rupee October contract on the NSE ended at 65.55. The October contract open interest  increased 8.30 % from the previous day • November contract open interest  increased 1.42 % 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 the US$INR.

Intra-day strategy

US$INR October futures contract (NSE) View: Bearish on US$INR
Sell US$INR in the range of 65.60-65.70 Market Lot: US$1000
Target: 65.45 / 65.35 Stop Loss: 65.80
Support Resistance
S1/ S2: 65.45 / 65.35 R1/R2:65.60 /65.80
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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