Buy USDINR; target of: 73.35 - 73.45: ICICI Direct

ICICI Direct, Dollar index weakens amid expectations of bigger stimulus and as a result, Rupee appreciated by almost 12 paise.

January 20, 2021 / 09:47 AM IST

ICICI Direct's currency report on USDINR

Spot Currency

Dollar index weakens amid expectations of bigger stimulus and as a result, Rupee appreciated by almost 12 paise. Fresh inflows seen in domestic equities also helped rupee to strengthen. • The U.S. Dollar has paired its gains after a long weekend. Treasury Secretary nominee Yellen demand for bigger stimulus helped dollar to weaken. EUR/USD is edging higher, despite concerns that Germany will not only extend the lockdown but also tighten.

Currency futures on NSE

The Put base at 73 is likely to act as crucial levels for the currency pair as it has remained an important support in the recent past. A move below these levels might open the gates for sharp appreciation. • The dollar-rupee January contract on the NSE was at Rs 73.20 in the last session. The open interest increased almost 8% in the February series while marginal decline was seen in January series open interest.

Intra-day strategy 

US$INR JAN futures contract (NSE)View: Bullish on US$INR
Buy US$INR in the range of 73.08-73.12Market Lot: US$1000
Target: 73.35/ 73.45Stop Loss: 72.98
 Support: 73.00/72.90Resistance: 73.35/73.55

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first published: Jan 20, 2021 09:45 am

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