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Last Updated : Oct 04, 2019 09:38 AM IST | Source: Moneycontrol.com

Buy USDINR; target of 71.20 - 71.30: ICICI Direct

ICICI Direct expects USDINR to find support 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 closed sharply lower yesterday losing almost 31 paise vs. US$, as it finally followed the CNY losses as well as strength in the US$. However, it is likely to open slightly higher today due to a selloff in crude oil prices • The dollar index closed sharply higher yesterday as the Euro dipped below 1.09 levels, lowest level since May 2017. US$ continues to gain due to fragile risk sentiment as well as strength in the US economy compared to other major economies. EM currencies, including rupee, could face a hurdle and witness sharp appreciation if strength in the dollar persists.

Benchmark yield

Domestic benchmark 10-year yields ended lower at 6.70% yesterday. Yields are likely to see some cool off due to subdued US yields as well as decline in oil price back to pre-attack levels • US treasury yields ended slightly lower at 1.66% as investors continue to reprice the Fed’s dovish stance as well as risks of growth slowdown in addition to US-China trade worries.

Currency futures on NSE

The dollar-rupee October contract on the NSE was at 71.07 in the previous session. Open interest increased 0.32% in the previous session • We expect the US$INR to find support at lower levels. Utilise downsides in the pair to initiate long positions.

Intra-day strategy 

US$INR October futures contract (NSE)View: Bullish on US$INR
Buy US$ in the range of 70.92 -70.96Market Lot: US$1000
Target: 71.20 / 71.30Stop Loss: 70.77
SupportResistance
S1/ S2: 70.90 / 70.70R1/R2:71.05 / 71.20
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 Oct 1, 2019 01:06 pm
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