Moneycontrol
Last Updated : Dec 05, 2018 11:23 AM IST | Source: Moneycontrol.com

Buy USDINR; target of 70.75 - 70.95: 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 extended another session of losses amid caution ahead of RBI’s monetary policy meeting as well as a rebound in oil prices. Investors would be tracking today’s policy meeting in the backdrop of Opec oil producer’s meet • The US $ extended mild declines against major currencies amid a rise in Japanese Yen as well as intra - day gains in Euro . Investors booked profits amid rising scepticism over the US - China trade deal. Investors would be closely tracking the Fed’s rate hike trajectory as well as progress over the US - China trade deal.

Benchmark yield

Government bonds gained ahead of RBI’s policy meeting in the backdrop of steady oil prices. An overall decline in oil prices as well as buying support from the central bank is positive for domestic debt • US treasury yields moved lower amid risk of curve reversion . Trade deal relief rally came under profit booking amid scepticism over the trade deal.

Currency futures on NSE

The dollar - rupee December contract on the NSE was at 70. 69 in the previous session. December contract open interest increased 1. 71 % 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$INR December futures contract (NSE) View: Bullish on US$INR
Buy US$ in the range of 70.42 -70.48 Market Lot: US$1000
Target: 70.75 / 70.95 Stop Loss: 70.29
Support Resistance
S1/ S2: 70.55 / 70.40 R1/R2:70.75 /70.90
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 Dec 5, 2018 11:23 am
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