Moneycontrol
Last Updated : Mar 05, 2019 10:10 AM IST | Source: Moneycontrol.com

Buy USDINR; target of 71.35 - 71.45 : 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 some of its previous session’s gains to end lower at 70.91, losing almost 16-paise against US$. Today it is expected to open slightly lower tracking strength in US$ • The dollar extended gains with the Euro and British Pound continuing to witness profit booking from its previous rallies. Expectations that US-China may inch towards a trade deal are supporting US$ and yields. Market participants would be awaiting clarity on Brexit, which could further improve global risk sentiment.

Benchmark yield

Sovereign treasury declined to 7.38% 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 declined to 2.72% 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 March contract on the NSE was at 71.13 in the previous session. March contract open interest declined 5.08% 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$INR March futures contract (NSE) View: Bullish US$INR
Buy US$ in the range of 71.08 -71.14 Market Lot: US$1000
Target: 71.35 / 71.45 Stop Loss: 70.95
Support Resistance
S1/ S2: 71.12 / 71.02 R1/R2:71.35 /71.45

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 Mar 5, 2019 10:10 am
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