Last Updated : Jan 03, 2019 09:45 AM IST | Source:

Buy USDINR; target of 70.50 - 70.60: 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 incurred sharp losses of over 1 % in previous session as reversal in US $ and risk - off sentiment weighed on EM currencies including Rupee. It is expected to open further lower today amidst overnight gains in dollar • The dollar index gained almost 0. 76 % in yesterday session as investors chased safe haven currencies as well as dollar amidst signs of slowing global growth. JPY rose sharply against dollar too outperforming against most of the currencies. Euro is again back to its supports near 1. 13 levels unable to breach 1. 15 on higher side.

Benchmark yield

Government bonds gained as yields declined while overall yields continue to remain in a range. Fiscal worries could haunt domestic debt even as expectations of farm - relief package has increased • US treasury yields declined as investors were spooked about global growth prospects. Investors are concerned whether Fed would be able to maintain its forecast in backdrop of changing future growth dynamics.

Currency futures on NSE

The dollar - rupee January contract on the NSE was at 70. 37 in the previous session. January contract open interest increased 3.17 % in the previous session • We expect the US$INR to find supports at lower levels. Utilise downsides in the pair to initiate long positions.

Intra-day strategy 

US$INR January futures contract (NSE) View: bullish on US$INR
Buy US$ in the range of 70.22 -70.30 Market Lot: US$1000
Target: 70.50 / 70.60 Stop Loss: 70.10
Support Resistance
S1/ S2: 70.25 / 70.10 R1/R2:70.55 /70.65
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.

First Published on Jan 3, 2019 09:45 am
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