May 17, 2017 10:37 AM IST | Source:

Sell USDINR; target of 64.15 - 64.05: ICICI Direct

ICICI Direct expects US$ to meet resistance at higher levels. Utilise upsides in the pair to go short on the US$INR pair.

ICICI Direct's currency report on USDINR

Debt market

Government bonds fell for the first time in three days, as profit booking set in following a recent rally triggered by retail inflation easing to a five- year low • The benchmark 6.97% 2026 bond yield declined to 6.67% from 6.81% in the previous session due to increased hopes of a rate cut • Yield on the US 10-year rose to 2.33% from 2.34% in the previous session.

Forex (US$/INR)  

The rupee was little changed against the US currency, as US$ demand from crude oil and other commodity importers offset record gains in domestic equities • US$ declined sharply against major currencies as recent events surrounding the US President weighed on US$. Market participants seemed to exit US reflation trades as political concerns have taken centerstage over economic agenda. US$JPY fell sharply due to dent to  risk-on sentiment while euro posted gains of near 1% due to weak US$.

US$/INR derivatives strategy  

In the currency futures market, the most traded dollar-rupee May contract on the NSE ended at 64.18. The May contract open interest declined 0.19% from the previous day • June contract open interest rose 12.01% in the last session • We expect the US$ to meet resistance at higher levels. Utilise upsides in the pair to go short on the US$INR pair.

Intra-day strategy
US$INR May futures contract (NSE)View: Bearish on US$INR
Sell US$INR in the range of 64.30 - 64.40Market Lot: US$1000
Target: 64.15/ 64.05Stop Loss: 64.50
S1/ S2: 64.00 / 63.80R1/R2:64.40 /64.60

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Follow us on
Available On