Moneycontrol
Dec 07, 2017 11:32 AM IST | Source: Moneycontrol.com

Buy USDINR; target of 64.85 - 64.95: 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 reversed losses post RBI’s monetary policy. The central bank made a small tweak to its inflation forecast while the policy turned out to be less hawkish than expected supporting domestic debt The G o I benchmark 6.79%202 7 bond yield declined 3 bps to 7.03% from 7.06%in the previous session Yield on the  US10 - year benchmark bond declined to 2.3 4 % from 2.3 5 %  amid  the  US  President ’s tax cuts plan.


Forex (USD/INR)

The rupee ended  at a near - two - week low against the USD, as equities  extended losses that raised capital outflow concerns, after the Monetary Policy Committee kept interest rates on hold The  dollar index  continued its gains ahead of US employment data as  well  as  Fed meeting next week. The euro came under profit booking while the Japanese Yen posted mild gains. The US President has officially recognised Jerusalem as Israel’s capital, which risks escalation of geo political concerns , especially in  the Arab world and  Middle East

Strategy

In the currency futures market, the near month dollar - rupee December contract on the NSE was unchanged at 64. 65. The December contract open interest declined 10.77 % from the previous day January contract USDINR ended at 64. 88. Open interest increased 0.19 % 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 64.50 - 64.60Market Lot: USD1000
Target: 64.85 / 64.95Stop Loss: 64.40
SupportResistance
S1/ S2: 64.55 / 64.35R1/R2:64.75 /64.90

 

 

 

 

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