Moneycontrol
Nov 29, 2017 12:03 PM IST | Source: Moneycontrol.com

Buy USDINR; target of 64.70 - 64.90: ICICI Direct

According to ICICI Direct expect the USD to meet support at lower levels. Utilise the down side in the pair to go long on the USDINR.


ICICI Direct's currency report on USDINR


Debt market

Government bonds recovered some of the losses as it had fallen over the past five sessions amid rising crude oil prices and after S&P Global Ratings decided not to upgrade the country’s cred it rating. Bonds had gained last week amid expectations of an S&P upgrade, after Moody's Investors Service raised its rating for India on Nov ember 17 The GoI benchmark 6. 79 % 202 7 bond yield fell to 7.03 % from 7.06 % in the previous session Yield on the US 1 0 - y ear benchmark bond has remained sticky at 2.3 3 %, as tax reform talks gain ground.

Forex (USD/INR)

The rupee rose for a second day to the highest level in more than two months against the dollar, underpinned by likely corporate and custodian dollar inflow s. It is likely that flows, especially on the debt side, helped the rupee The dollar index, which measures the greenback against a basket of six major rivals, was trading up 0. 39 %. Fed chair nominee Jerome Powell, in his Senate confirmation hearing, discussed potentially lightening regulation. He also said the best way to sustain the US economic recovery would be to continue gradual interest rate increases.

Strategy

In the currency futures market, the near month dollar - rupee November contract on the NSE ended at 64. 40. The November contract open interest declined 12.7% from the previous day December contract open interest rose 42.7 % in the previous session We expect the USD to meet support at lower levels. Utilise the downside in the pair to go long on the USDINR.

Intra-day strategy
USDINR November futures contract (NSE)View: Bullish on USDINR
Buy USDINR in the range of 64.35 - 64.45Market Lot: USD1000
Target: 64.70 / 64.90Stop Loss: 64.10
SupportResistance
S1/ S2: 64.20 / 64.00R1/R2:64.97 /64.90

 

 

 

 

 

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