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Buy USDINR; target of: 73.70 - 73.80 : ICICI Direct

ICICI Direct, Due to a sharp sell-off in domestic equities and extension of restriction in few states, the rupee paused its upward trend and ended flat for the day •

May 12, 2021 / 09:41 AM IST

ICICI Direct's currency report on USDINR

Spot Currency

Due to a sharp sell-off in domestic equities and extension of restriction in few states, the rupee paused its upward trend and ended flat for the day • The Dollar index further fell marginally and remained at a fresh two and a half month low as inflation concerns weighed on the dollar ahead of US consumer price data.

Currency futures on NSE

A sell-off in the Dollar index and weakness in domestic equities pushed the rupee to remain flat for the day. However, writing activity increasing in US$INR Puts, we feel a bounce towards 74 levels cannot be ruled out • The dollar-rupee April contract on the NSE was at Rs 73.54 in the last session. The open interest rose almost 1.5% for the May series.

Intra-day strategy 

US$INR May futures contract (NSE)View: Bullish on US$INR
Buy US$INR in the range of 73.48-73.51Market Lot: US$1000
Target: 73.70/ 73.80Stop Loss: 73.35
Support: 73.50/73.30Resistance: 73.85/74.00

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: May 12, 2021 09:41 am

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