Moneycontrol
Last Updated : May 17, 2018 11:52 AM IST | Source: Moneycontrol.com

Buy USDINR; target of 67.90 - 68.00: ICICI Direct

ICICI Direct expects USDINR to find supports at lower levels. Utilise downsides in the pair to initiate long positions.

ICICI Direct's currency report on USDINR

Spot Currency

The rupee reversed its losses and ended up almost 0 . 46 % vs . US $ as receding concerns over domestic state election political turmoil as well as steady US $ led to some profit booking in rupee shorts • The US $ ended the session with mild gains failing to derive supports from sharp gains in US 10 - year yields. Euro recovered from lows near 1 . 177 to end the session above its supports near 1.18. We expect some consolidation in euro and GBP amid absence of any major triggers. Upcoming US - North Korean leaders summit as well as FOMC policy meeting are major events.

Benchmark yield   Sovereign bonds were slightly higher yesterday. However, with crude oil prices in the vicinity of $ 80 / bl and sluggish demand for domestic debt, we can see yields rising to 8 % in the near tem • US 10 - year yields ended at 3.10 % , the highest levels since mid 2011 . We expect yields to continue to rise if crude oil prices see further gains.

Currency futures on NSE The near - month dollar - rupee May contract on the NSE was at 67. 89 in the previous session. The May contract open interest increased 14. 13 % in previous day • We expect the US$INR to find supports at lower levels. Utilise downsides in the pair to initiate long positions.

Intra-day strategy

US$INR May futures contract (NSE) View: Bullish on US$INR
Buy US$INR in the range of 67.65 - 67.75 Market Lot: US$1000
Target: 67.90/ 68.00 Stop Loss: 67.55
Support Resistance
S1/ S2: 67.60 / 67.40 R1/R2:67.95 /68.15
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 May 17, 2018 11:52 am
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