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Last Updated : Feb 14, 2019 12:00 PM IST | Source: Moneycontrol.com

Buy USDINR; target of 71.25 - 71.35: ICICI Direct

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

ICICI Direct's currency report on USDINR

Spot Currency

The rupee pared all opening gains to end on a weaker note losing almost 13 paise over Tuesday. Concerns in the backdrop of US China trade talks outcome, Brexit uncertainty as well as a mild uptick in oil prices weighed on the rupee • The dollar index rose sharply mounting 97.0 levels ahead of US China trade talks outcome. However, a dovish Fed could cap large gains in the US$. Also, uncertainty around Brexit continues to haunt global risk sentiments. Outcome of the US-China trade talks as well as trend in Euro remain key triggers for the dollar in the near term.

Benchmark yield

Sovereign treasury yields declined 7.29% as muted global yields and lower inflation have kept yields in a range. Domestic retail inflation fell to 2.05% in January 2019, which could provide further space for RBI to cut rates • US treasury yields rose to 2.70% while worsening global growth expectations could cap sharply rising yields. Incoming economic data remains important for further signals.

Currency futures on NSE

The dollar-rupee February contract on the NSE was at 70.96 in the previous session. February contract open interest increased 9.54% in the previous session • We expect the US$INR to gain supports at lower levels. Utilise downsides in the pair to initiate long positions.

Intra-day strategy 

US$INR February futures contract (NSE) View: Bullish on US$INR
Buy US$ in the range of 70.93 -70.99 Market Lot: US$1000
Target: 71.25 / 71.35 Stop Loss: 70.81
Support Resistance
S1/ S2: 70.80 / 70.7 R1/R2:71.25 /71.35
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 Feb 14, 2019 12:00 pm
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