Moneycontrol
Last Updated : Jan 09, 2019 09:55 AM IST | Source: Moneycontrol.com

Buy USDINR; target of 70.35 - 70.45: ICICI Direct

ICICI Direct expects US$INR to meet 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 extended losses as rising concerns over fiscal slippage amid an election year as well as a rebound in oil prices weighed. It is expected to open mildly stronger today while a sharp appreciation would be capped • The dollar staged a recovery amid gains in US equities as well as profit booking in major currencies. Investors continue to await the outcome of the ongoing US - China trade talks. A positive outcome would see a further rally in risk on currencies like Euro as well as commodity currencies like AUD and CAD.

Benchmark yield

Sovereign bond yields declined even as new 10 - year treasury became benchmark. Domestic yields would remain in a range in the backdrop of relatively lower levels of oil prices as well as concerns over domestic farm relief package and other incentives • US treasury yields rose tracking progress over US - China trade talks . Yields and dollar would now continue to track the March interest rate hike possibility, which has almost disappeared since the Fed’s dovish December rate hike.

Currency futures on NSE

The dollar - rupee January contract on the NSE was at 70. 36 in the previous session. January contract open interest declined 4.05 % in the previous session • We expect the US$INR to meet find supports at lower levels. Utilise downsides in the pair to initiate long positions.

Intra-day strategy 

US$INR January futures contract (NSE) View: Bullish on US$INR
Buy US$ in the range of 70.06 -70.14 Market Lot: US$1000
Target: 70.35 / 70.45 Stop Loss: 69.94
Support Resistance
S1/ S2: 70.20 / 70.05 R1/R2:70.40 /70.55
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, 2019 09:55 am
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