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Last Updated : Dec 06, 2016 10:34 AM IST | Source: Moneycontrol.com

Buy US$INR; target of 68.45 - 68.65: ICICI Direct

ICICI Direct expects US$ to gain support at lower levels. Utilise downsides in the dollar to go long on the US$INR. Buy December Futures with a target of 68.45 - 68.65.

ICICI Direct's report on currency

Debt market  
Government bonds ended higher, ahead of the monetary policy  committee’s two-day review meet, amid widespread expectations that  the central bank will cut the rate  • The benchmark 6.97% bond maturing in 2026 ended at | 105.44 against  | 105.25 the previous day  • The benchmark 6.97% 2026 bond yield fell to 6.22% from 6.24% in the  previous day.  

Forex (US$/INR)  
The rupee was little changed against the dollar, as traders remained  cautious ahead of the  monetary policy review. Strength in major  currencies vs. US$ is helping developing market currencies limit losses  • US$ witnessed profit booking due to strength in euro. The dollar index  fell 0.67% as a recovery in euro post Italian constitutional reforms  referendum supported a recovery. Traders remain wary of recent a surge  in US$ ahead of the upcoming ECB meet where participants would look  for a signal on the asset purchase programme.

US$/INR derivatives strategy: Buy December Contract  
In the currency futures market, the most traded dollar-rupee December  contract on the NSE ended at 68. 34. The December contract open  interest fell 1.48% from the previous day  • January contract open interest rose 10.77% from the previous day  • We expect the US$ to gain support at lower levels. Utilise downsides in  the dollar to go long on the US$INR pair.

Intra-day strategy
US$INR December futures contract (NSE)View: Bullish on US$INR
Buy US$INR in the range of 68.10 -68.20Market Lot: US$1000
Target: 68.45 / 68.65Stop Loss: 68.00
SupportResistance
S1/ S2: 68.20/68.00R1/R2:68.45/68.65







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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First Published on Dec 6, 2016 10:12 am
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