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Last Updated : Apr 18, 2016 11:06 AM IST | Source:

Buy US$INR April fut; target of 66.69-66.88 : ICICIdirect has expect the US dollar to find buying support on decline against the rupee.Utilise declines in the US$/INR April contract to Buy target of 66.69-66.88's report on currency

Debt market

Government bond (10-year G-sec) prices ended lower as traders shed positions in a holiday-truncated week amid heavy supply of notes, even as softer inflation print and favourable monsoon forecast limited losses.The benchmark 7.59% bond maturing in 2026 ended flat at | 101.04 vs. the previous close of | 101.17 The  benchmark 7.59% 2026 bond yield ended at 7.44%, up 2 bps from the previous close of 7.42% The US treasury yield of the 10-year benchmark settled at 1.75%, down 4 bps from the previous close of 1.79%

Forex (US$/INR)

The rupee weakened to a one-week low against the US dollar,as importers’ dollar  purchases erased gains stemming from rising equities that were prompted by improved risk appetite after upbeat Chinese trade data and a rally in crude oil prices The Indian currency ended the day at  66.64,down 0.32% from the previous close of 66.43 The dollar index against six major currencies ended at 94.74, up  0.04% from the previous close of 94.70

US$/INR derivatives strategy: Buy April Contract

In the currency futures market, the most traded dollar-rupee April contract on the NSE ended at 66.74. The April contract open interest was down 3.45% from the previous day

May contract open interest was up26.09% from the previous day

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

Intra-day strategy

US$INR Apr futures contract (NSE)View: Bullish on INR
Buy US$INR in the range of 66.39-66.49Market Lot: US$1000
Target: 66.69-66.88Stop Loss: 66.29
S1/ S2: 66.55/66.30R1/R2:66.85/67.10

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.

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First Published on Apr 18, 2016 11:06 am
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