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Last Updated : Dec 27, 2016 10:38 AM IST | Source: Moneycontrol.com

Buy USDINR; target of 67.90 - 68.10: ICICI Direct

ICICI Direct expects USD to gain supports at lower levels. Utilise downsides in the dollar to go long on the USDINR. Buy December Futures with a target of 67.90 - 68.10.

ICICI Direct's report on currency

Debt market  
Government bonds fell for a third session, as investors sold debt amid  lack of fresh triggers while the MPC upgraded its hawkish outlook  reducing hopes of an immediate rate cut in the near term  • The benchmark 6.97% 2026 bond yield rose to 6.57% from 6.54% on  Friday  • Yield on the US 10-year yield was  steady at 2.54% as US markets  remained closed on account of holidays.  

Forex (US$/INR)  
The rupee gained against the US$ as international markets remained  closed on account of Christmas holidays. However, gains will remain  capped amid huge outflows and rising US yield  • The US$ continued to consolidate  against major currencies as the  holiday season sets in. December payrolls data would be a catalyst for a  further trend in the US$. Japan’s November national CPI again slumped  to -0.4%, marking a ninth straight month of an annual decline.  

US$/INR derivatives strategy : Buy December Contract  
In the currency futures market, the most traded dollar-rupee December  contract on the NSE ended at 67. 71. The December contract open interest fell by 2.55% from the previous day  • January contract open interest rose 10.03% from previous day  • We expect the US$ to gain supports at lower levels. Utilise downsides in  the dollar to go long on the US$INR pair.  

Intra-day strategy
US$INR December futures contract (NSE)View: Bullish on US$INR
Buy US$INR in the range of 67.60-67.70Market Lot: US$1000
Target: 67.90 / 68.10Stop Loss: 67.50
SupportResistance
S1/ S2: 67.70/67.50R1/R2:68.00/68.20







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.

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First Published on Dec 27, 2016 10:38 am
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