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Last Updated : Sep 25, 2019 12:14 PM IST | Source: Moneycontrol.com

Buy USDINR; target of 71.25 - 71.35: 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 pared its opening gains to end weaker at 71.02 as a surge in oil prices and weak CNY weighed. It is expected to open further lower today tracking an escalation in geopolitical risks as well as fragile US-China trade sentiment • The dollar index ended lower amid a cool-off in US yields as well as rise in US political woes. Speaker Pelosi allowing the opening of a formal enquiry on the US President has escalated US domestic political tidings running into an election year. The CNY is currently trading near 7.12 levels. Any further depreciation is likely to weigh on all EM currencies, including the rupee.

Benchmark yield

Domestic benchmark 10-year yields ended slightly higher at 6.78% as investors try to price in the government’s corporate tax rate cut pressure on fiscal deficit • US 10-year treasury yields ended lower at 1.65% amid US domestic political woes. Also, the US President’s China bashing at the UN has raised concerns over US-China trade talks.

Currency futures on NSE

The dollar-rupee September contract on the NSE was at 71.05 in the previous session. Open interest declined 15.99% 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$INR September futures contract (NSE)View: Bullish on US$INR
Buy US$ in the range of 70.98 -71.02Market Lot: US$1000
Target: 71.25 / 71.35Stop Loss: 70.
SupportResistance
S1/ S2: 71.0 / 70.80R1/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.



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First Published on Sep 25, 2019 11:13 am
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