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Buy USDINR; target of: 74.05 - 74.25: ICICI Direct

ICICI Direct, The rupee pared most of its initial losses and settled at 73.84 levels.

December 23, 2020 / 04:34 PM IST

ICICI Direct's currency report on USDINR

Spot Currency

The rupee pared most of its initial losses and settled at Rs 73.84 levels. However, the Dollar index continued to trade near Rs 90.5, which saw sharp reversal from lower levels this week to keep the rupee move in check • The dollar held gains against major peers in the holiday season. A cautious approach would be adopted on fast spreading Covid variant in the US, which would keep risk aversion assets in demand.

Currency futures on NSE

Due to elevated levels of the Dollar index, which is finding strength on the back of risk aversion, we feel the rupee would continue to depreciate. However, it is likely to consolidate near Rs 74 levels in today’s session • The dollar-rupee December contract on the NSE was at Rs 73.94 in the last session. The open interest remained almost flat for the December series contract.

Intra-day strategy 

US$INR DEC futures contract (NSE)View: Bullish on US$INR
Buy US$INR in the range of 73.90-73.94Market Lot: US$1000
Target: 74.05/ 74.25Stop Loss: 73.80
Support: 73.65/73.85Resistance: 74.25/74.50
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first published: Dec 23, 2020 08:56 am