Moneycontrol
Dec 08, 2017 11:05 AM IST | Source: Moneycontrol.com

Buy USDINR; target of 64.90 - 65.00: 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 fell for the first time in three sessions, as investors sold notes ahead of a weekly auction today The GoI benchmark 6.79% 2027 bond yield gained 3 bps to 7.06% from 7.03% in the previous session Yield on the US 10-year benchmark bond rose to 2.36% from 2.34% as FOMC monetary policy meeting approaches

Forex (USD/INR)

The rupee fell for a second straight session against the USD, as foreign banks stepped up greenback purchases amid strengthening in the dollar ahead of the key US employment data today The dollar index continues to rebound even though major currencies ended on a mixed note. The Japanese Yen posted sharp losses while the British Pound gained over speculation that Ireland and the UK were close to a Brexit deal. The Euro continues to tether near the 1.185 zone. Today’s US employment data is crucial for the US$ in the near term in the backdrop of the upcoming monetary policy meeting

Strategy

In the currency futures market, the near month dollar-rupee December contract on the NSE was at 64.69. The December contract open interest declined 6.58% from the previous day January contract USDINR ended at 64.90. Open interest increased 2.42% in the previous session We expect the USD to find support at lower levels. Utilise the downside 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 64.54 - 64.64Market Lot: USD1000
Target: 64.90 / 65.00Stop Loss: 64.43
SupportResistance
S1/ S2: 64.58 / 64.38R1/R2:64.80 /65.00

 

 

 

 

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