Moneycontrol
Oct 12, 2017 10:32 AM IST | Source: Moneycontrol.com

Sell USDINR; target of 65.15 - 65.10: ICICI Direct

ICICI Direct expects USD to meet supply pressure at higher levels. Utilise upside in the pair to go short on the USDINR.


ICICI Direct's currency report on USDINR

Debt market

Government bon ds were little changed, as investors consolidated positions ahead of the release of September inflation data today • The GoI benchmark 6.79 % 2027 bond yield was steady at 6. 74 % in the previous session • Yield on the US 10 - year yield declined to 2.35% from 2.36 % in the previous session.

Forex (US$/INR)

The rupee rose for a third straight day. The US$ weakened after US President Donald Trump’s twitter clash with a fellow Republican Senator  over the  government’s tax overhaul plans • The US$  extended losses against major currencies post Fed’s monetary policy meeting minutes .  The Fed raised concerns on inflation growth although a December interest rate hike remain intact. This led to profit booking in US$ and raised concerns on the future pace of Fed rate hikes.  Euro jumped to 1.19 level on a weaker US$ and waning fears of Catalonia region’s independence.

Strategy

In the currency futures market, the near month dollar - rupee October contract on the NSE ended at 65.29. The October contract open interest  declined 14.50 % from the previous day • November contract open interest  increased 12.62 % in the  previous session • We expect  the US$ to meet supply pressure at higher levels. Utilise upside in the pair to go short on the US$INR.

Intra-day strategy
US$INR October futures contract (NSE)View: Bearish on US$INR
Sell US$INR in the range of 65.34 -65.42Market Lot: US$1000
Target: 65.15 / 65.10Stop Loss: 65.55
SupportResistance
S1/ S2: 65.25 / 65.05R1/R2:65.35 /65.55

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

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