Moneycontrol
Last Updated : Jan 30, 2019 11:04 AM IST | Source: Moneycontrol.com

Buy USDINR; target of 71.55 - 71.65: 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 ended unchanged in the previous session amid indecisiveness and caution ahead of Budget day and US FOMC policy meeting. However, it is expected to open weaker today tracking a rise in the US $ as well as higher oil price • The dollar ended on a slightly higher note as losses against Euro were more than offset by gains against GBP and JPY. The pound declined as lawmakers rejected a proposal to delay the UK’s exit from EU. Uncertainty around Brexit has only increased as we head towards the actual Brexit date of March 29, 2019.

Benchmark yield

Sovereign treasury yields remain in a range ahead of Budget day tracking muted moves in global yields. The upcoming Union Budget and RBI monetary policy meeting will provide signals for domestic debt in the near term • US treasury yields declined yesterday’s. However, market participants would be tracking the upcoming Fed monetary policy meeting in the backdrop of lower expectation of faster rate hikes.

Currency futures on NSE

The dollar - rupee February contract on the NSE was at 71. 33 in the previous session. January contract open interest increased 32. 72 % 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$INR February futures contract (NSE) View: Bullish on US$INR
Buy US$ in the range of 71.26 -71.34 Market Lot: US$1000
Target: 71.55 / 71.65 Stop Loss: 71.14
Support Resistance
S1/ S2: 71.35 / 71.25 R1/R2:71.55 /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.

First Published on Jan 30, 2019 11:04 am
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