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Last Updated : Nov 06, 2019 09:43 AM IST | Source: Moneycontrol.com

Buy USDINR; target of 71.15 - 71.25: ICICI Direct

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

Representative image
Representative image

ICICI Direct's currency report on USDINR

Spot Currency

The rupee ended on a higher note, up by seven paise vs. the US$ amid improving global risk sentiment. However, it is likely to open slightly weaker today amid further gains in the US$ as well as firmer oil prices • The US$ index is trading higher near 98.0, helped by profit booking in Euro and losses in JPY as well as upbeat US yields. CNY is currently trading at 7.0 levels while strength in the same is likely to provide some relief to the rupee. The market would wait to see Chinese demand on whether US rolls back existing tariff to finalise initial trade pact. If the US agrees, we may see a relief rally across EM currencies.

Benchmark yield

Domestic benchmark 10-year yields ended higher at 6.52% in the previous session. Domestic GST collections for October were at Rs 95380 crore, down 5.29% on a YoY basis • The US 10-year benchmark yields extended further gains to close at 1.86% in the previous session. Risk sentiments improved supported by overall strength in US equities while a sharper rally in yields could be a signal that the US economy is relatively preforming well.

Currency futures on NSE

The dollar-rupee November contract on the NSE was at 70.82 in the previous session. Open interest increased 18.57% 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$INR November futures contract (NSE)View: Bullish on US$INR
Buy US$ in the range of 70.86 -70.90Market Lot: US$1000
Target: 71.15 / 71.25Stop Loss: 70.70
SupportResistance
S1/ S2: 70.85 / 70.70R1/R2:71 / 71.15
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.



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First Published on Nov 6, 2019 09:43 am
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