Moneycontrol
Last Updated : Jan 09, 2018 11:41 AM IST | Source: Moneycontrol.com

Buy USDINR; target of 63.75 - 63.85: ICICI Direct

ICICI Direct expects USD to find supports at lower levels. Utilise the down side in the pair to go long on the USDINR.

ICICI Direct's currency report on USDINR

Debt market

Government bonds fell today as market sentiment remained bearish amid oversupply of notes in this fiscal year and ensuing concerns over the Centre’s fiscal consolidation drive • The GoI benchmark 6. 79 % 2027 bond yield rose to 7. 34 % from 7. 29 % in the previous session • Yield on the US 10 - year benchmark bond was steady at 2.48 % in the previous session.

Forex (US$/INR)

The rupee fell for the first time in three sessions, as a recovery in the US$ amid Euro weakness outweighed gains triggered by a weaker - than - expected US jobs data • US$ fell against major currencies as euro and other major currencies reversed previous gains. Yen, however, remained in a range while strength in the JPY could trigger risk aversion. US$ is rising on the back of tightening yields and gains in equities. We expect the US$ to further gain, which could pressurise emerging currencies including rupee.

Strategy In the currency futures market, the near month dollar - rupee January contract on the NSE was at 63. 64. The January contract open interest declined 3.99 % from the previous day • February contract US$INR ended at 63.83. Open interest increased 5.27 % in the previous session • We expect the US$ to find supports at lower levels. Utilise the down side in the pair to go long on the US$INR.

Intra-day strategy

US$INR January futures contract (NSE) View: Bullish on US$INR
Buy US$INR in the range of 63.60 - 63.65 Market Lot: US$1000
Target: 63.75 / 63.85 Stop Loss: 63.48
Support Resistance
S1/ S2: 63.55 / 63.45 R1/R2:63.75 /63.85
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.

First Published on Jan 9, 2018 11:41 am
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