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Last Updated : Nov 08, 2019 09:37 AM IST | Source: Moneycontrol.com

Buy USDINR; target of 71.55 - 71.65: 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 closed slightly higher by two-paise yesterday supported by an appreciating Chinese Yuan and positive inflows in the last few sessions. However, it is likely to open sharply lower today amid strength in US$ and rising concerns over domestic fiscal slippage • The US$ index recouped 98.0 levels to end higher against major currencies. Strength in US equities coupled with rising yields is positive for US$. Chinese Yuan has appreciated towards 6.97 levels yesterday amid news that the US and China may work towards reducing tariffs on a proportionate basis. This is mildly positive for EM currencies, including rupee.

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 71.04 in the previous session. Open interest increased 7.67% 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 71.28 -71.32Market Lot: US$1000
Target: 71.55 / 71.65Stop Loss: 71.12
SupportResistance
S1/ S2: 71.35 / 71.15R1/R2:71.50 / 71.65
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 8, 2019 09:37 am
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