Moneycontrol
Dec 06, 2017 11:59 AM IST | Source: Moneycontrol.com

Buy USDINR; target of 64.75 - 64.85: ICICI Direct

According to ICICI Direct expect the USD to find 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 rose for the first time in three sessions, on value buying after prices fell to record lows a day before, even as investors await the Monetary Policy Committee’s decision The G o I benchmark 6. 79 % 2027 bond yield moved 2 bps lower to 7.06% from 7.08% in the previous session Yield on the US10 - year benchmark bond declined to 2.35% from 2.37% amid the US President ’s tax cuts plan

Forex (USD/INR)

The rupee was little changed against the USD, as oil and importers  demand offset early gains from  a  broad weakness in the US currency  while investors await monetary policy outcome ahead of crucial state elections The dollar index regained some of its previous losses supported by the US President's planned tax cuts reform.  It has also led to increased expectations of faster pace of US interest rate hike.  Euro and British Pound slugfest continue amid ongoing Britain's exit negotiations. Japanese Yen is expected to come under pressure due to policy divergence on further strength in USD

Strategy

In the currency futures market, the near month dollar - rupee December contract on the NSE was unchanged at 64. 55. The December contract open interest declined 7 .34 % from the previous day January contract USDINR ended at 64.76. O pen interest increased 2.40% in the previous session We expect the USD to find 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 64.45 - 64.51Market Lot: USD1000
Target: 64.75 / 64.85Stop Loss: 64.33
SupportResistance
S1/ S2: 64.50 / 64.30R1/R2:64.70 /64.90

 

 

 

 

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