Moneycontrol Be a Pro
Get App
Last Updated : Jan 16, 2017 11:11 AM IST | Source:

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
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 are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

The Great Diwali Discount!Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Jan 16, 2017 11:11 am
Follow us on
Available On
PCI DSS Compliant