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Last Updated : Jan 16, 2017 11:11 AM IST | Source: Moneycontrol.com

Buy USDINR; target of 68.35 - 68.55: ICICI Direct

ICICI Direct expects USD to find supports at lower levels. Utilise downsides in the dollar to go long on the USDINR. Buy January Futures with a target of 68.35 - 68.55.

ICICI Direct's report on currency

Debt market  
Government bonds fell, after a fresh supply of debt weighed on investor appetite while higher industrial production number damped hopes of a February rate cut by the  Monetary Policy Committee  • The benchmark 6.97% 2026 bond yield rose to 6.42% from 6.37% the  previous day  • Yield on the US 10-year yield rose to 2.40% from 2.36% amid  consolidation in US$.  

Forex (US$/INR)      
The rupee fell for a fifth straight  week, weighed down by dollar demand  from importers, despite the US$ weakening after US President-elect  Donald Trump’s press meet did not re veal much on his future economic agenda  • The US dollar index fell against major  currencies due to profit booking at  higher levels along with weaker consumer sentiment and retail sales data. However, weakness could be limited as a slide in the British pound  on British Prime Minister’s hard brexit stance would support US$ amid  risk-off sentiment.  

US$/INR derivatives strategy  
In the currency futures market, the most traded dollar-rupee January contract on the NSE ended at 68.27. The January contract open interest  fell by 5.76% from the previous day  • February contract open interest rose 6.85% from previous day • We expect the US$ to find supports at lower levels. Utilise downsides in the dollar to go long on the US$INR pair.  

Intra-day strategy
US$INR January futures contract (NSE)View: Bullish on US$INR
Buy US$INR in the range of 68.05-68.15Market Lot: US$1000
Target: 68.35/ 68.55Stop Loss: 67.95
SupportResistance
S1/ S2: 68.10 / 67.90R1/R2:68.50/68.70







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 Jan 16, 2017 11:11 am
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