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Buy USDINR; target of 71.70 - 71.80: ICICI Direct

ICICI Direct expects USDINR to find support at lower levels. Utilise upsides in the pair to initiate long positions.

December 30, 2019 / 10:36 AM IST

ICICI Direct's currency report on USDINR

Spot Currency

The rupee depreciated by 4 paise to end at a fresh three-week low of 71.35 against the US dollar on December 27, continuing its losing streak for a sixth day in a row amid a steady rise in crude oil prices • The dollar was on the defensive on Monday in light year-end trade after suffering a setback the previous session, as hopes of a US-China trade deal lifted investors’ risk appetite, sapping safe-haven demand for the greenback.

Benchmark yield

Yields on the government’s 10-year treasury bill fell 1.15% and closed at 6.51 vs. 6.58 • The recent uptick in the US treasury yields could be attributed to the positive signals concerning the US-China phase-one trade deal.

Currency futures on NSE

The dollar-rupee January contract on the NSE was at 71.60 in the previous session. Open interest rose 22.8% in the previous session • We expect the US$INR to find support at lower levels. Utilise upsides in the pair to initiate long positions.

Intra-day strategy 

US$INR January futures contract (NSE)View: Bullish on US$INR
Buy US$ in the range of 71.45 -71.55Market Lot: US$1000
Target: 71.70 / 71.80Stop Loss: 71.35
SupportResistance
Support: 71.35/71.25Resistance: 71.75/71.85
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: Dec 30, 2019 10:36 am

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