Moneycontrol
Dec 05, 2017 12:14 PM IST | Source: Moneycontrol.com

Buy USDINR; target of 64.80 - 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 fell for a second session, as faster domestic economic growth in the second quarter hurt rate cut bets in the upcoming monetary review. Additionally, higher bond yields in U S also pushed Indian bond yields to its highest level since September 2016 The G o I benchmark 6. 79 % 202 7 bond yield moved 2 bps higher to 7.08 % from 7.06 % in the previous session Yield on US 10 - y ear benchmark bond moved higher to 2.37%, as tax reform s move to the next stage. Now the appointed tax reform committee will iron out differences and try to pass reforms in the coming two weeks.

Forex (USD/INR)

The rupee fell on Monday against the US dollar in early trade on the back of brisk demand for US dollar from bankers and importers and dealers. However, a firm domestic equity market capped losses to some extent The dollar index held ground around 93.  Investors were focused on the approval of a bill to overhaul the US tax system and reports of progress in the Br exit negotiations. This provided a lift to the dollar but it failed to capitalize on the gains. The dollar rose to a high of D1.1828 against the Euro on Monday but has since eased back to around D1.1850

Strategy

In the currency futures market, the near month dollar - rupee December contract on the NSE ended at 64. 55. The December contract open interest decreased 7% from the previous day January contract open stayed almost unchanged 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 64.35 - 64.45Market Lot: USD1000
Target: 64.80 / 64.90Stop Loss: 64.00
SupportResistance
S1/ S2: 64.20 / 64.00R1/R2:64.70 /64.90

 

 

 

 

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