Buy NSE USDINR April fut above 54.38; SL 54.29: ICICIdirect

ICICIdirect.com has come out with its report on currency. According to the research firm, the US dollar is expected to get buying support on declines against the INR. One can utilise the lows in the US$/INR April contract to buy.

Forex (US$/INR)

The rupee opened stronger on the back of an improvement in global risk sentiment following the announcement of the Cyprus bailout deal. Easing of norms for FIIs in debt markets also aided sentiment. However, gains were slightly pared in later trade tracking losses in domestic equities. Meanwhile, the Prime Minister’s economic advisor said India’s Q3FY13 current account deficit could be high, ahead of official data due to be released later this week

The rupee ended at 54.17, up 0.30% from the previous day’s close of 54.33

The dollar index against six major currencies was at 82.89, up 0.60 from its previous close

US$/INR derivatives strategy: Buy April contract

In the currency futures market, the most traded dollar-rupee April contract on the NSE closed at 54.60. The April contract open interest was up 34.20% from the previous day

The May contract open interest was down 51.20% from the previous day

We expect the US dollar to get buying support on declines against the INR. Utilise the lows in the US$/INR April contract to buy

Intra-day strategy

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