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Last Updated : Jan 08, 2018 11:18 AM IST | Source: Moneycontrol.com

Sell USDINR; target of 63.40 - 63.35: ICICI Direct

ICICI Direct expects US$ to meet resistance at higher levels. Utilise the up side in the pair to go short on the US$INR.

ICICI Direct's currency report on USDINR

Debt market

Government bonds rose as new 10 - year bond started trading while the government sold less debt than planned. S ale of sovereign debt quotas for foreign investors by state administration would remain in focus • The GoI benchmark 6.79 % 2027 bond yield declined to 7. 29 % from 7.33 % in the previous session • Yield on the US 10 - year benchmark bond rose to 2.4 8 % from 2.45% in the previous session.

Forex (US$/INR)

The rupee logged its biggest weekly rise in five months against the  dollar, helped by foreign fund inflows and a broad US$ weakness • US$ rose slightly against major currencies as Euro witnessed profit  booking while slightly higher US December manufacturing payrolls data  supported dollar gains. December non - farm payrolls were lower at 148000 against previously 1 90000 rolls. JPY continue to lo se against most majors as divergent monetary policies le d to JPY being dumped while waning risk concerns could see further weakness in JPY.

Strategy In the currency futures market, the near month dollar - rupee January contract on the NSE was at 63. 52. The January contract open interest declined 5.64 % from the previous day • February contract US$INR ended at 6 3. 72. Open interest increased 2.21 % in the previous session • We expect the US$ to meet resistance at higher levels. Utilise the up side in the pair to go short on the US$INR.

Intra-day strategy

US$INR January futures contract (NSE) View: Bearish on US$INR
Sell US$INR in the range of 63.60 - 63.65 Market Lot: US$1000
arget: 63.40 / 63.35 Stop Loss: 63.78
Support Resistance
S1/ S2: 63.50 / 63.35 R1/R2:63.65 /63.75
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 on Jan 8, 2018 11:18 am
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