Moneycontrol
Nov 30, 2017 11:45 AM 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 were steady after the government repurchased notes, boosting investor sentiment ahead of a fresh debt sale and release of GDP data tomorrow. Going ahead, Indian bonds will likely find support from state - run lenders as tepid credit growth prompts them to step up purchase of debt The G o I benchmark 6.79 % 202 7 bond  yield remained firm at 7.03 % from  7.06 % in the previous session Yield on  the  US 10 - y ear benchmark bond  moved higher  to 2.3 9 %, as  tax  reform talks  move ahead , supplemented by strong GDP number.

Forex (USD/INR)

The rupee gained for a third day and rose to a more - than - two - month high against the dollar yet again, helped by the banks’ greenback sales, likely for custodian clients. However, further gains in the rupee were capped on likely intervention from the central bank The dollar index held ground around 93. The dollar rose on the back of robust data, helped by strengthening bets of a December US rate hike though North Kore a may have prove a setback.

Strategy

In the currency futures market, the near month dollar - rupee November contract on the NSE end ed at 64. 40. The December contract open interest increased 73 % from the previous day January contract open interest rose 20 % in the previous session We expect the US D to meet support at lower levels. Utilise the down side in the pair to go long on the USDINR.

Intra-day strategy
USDINR December futures contract (NSE)View: Bullish on USDINR
Buy USDINR in the range of 64.40 - 64.50Market 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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