Last Updated : Jan 12, 2018 10:59 AM IST | Source:

Sell USDINR; target of 63.58 - 63.50: ICICI Direct

ICICI Direct expects USD to meet supply pressure at higher levels. Utilise the up side in the pair to go short on the USDINR.

ICICI Direct's currency report on USDINR

Debt market

Government bonds were little changed as sentiment s turned bearish  amid higher oil prices and lowered expectations on rate cut s in  the  near  future • The GoI  benchmark  7.17 % , 2028 bond  yield rem ained unchanged 7.26 % in the previous session • Yield on  the  US 10 - year benchmark bond declined to 2.53 % from 2. 5 6 % in the previous session.

Forex (US$/INR)

The rupee fell against the US$, as higher oil prices and overnight strength in the US$ weighed on emerging currencies including the rupee. However , with the announcement of FDI reforms , we expect  the  rupee to see  some strength from current levels • The US$ declined against major currencies as strength in  the  Euro and  JPY weighed on  the  US$. The dollar fell a long with US yields that continue to face hurdle near the 2.60 % zone. The euro gained post ECB minutes although 1.21 continues to be a crucial hurdle. A breach of this level could see the pair rising till 1.23 levels.

Strategy In the currency futures market, the near month dollar - rupee January contract on the NSE was at 63.77. The January contract open interest declined 4.92 % from the previous day • February contract US$INR ended at 63.98. Open interest increased 2.97 % in the previous session • We expect the US$ to meet supply pressure 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 63.75 - 63.81 Market Lot: US$1000
Target: 63.58 / 63.50 Stop Loss: 63.92
Support Resistance
S1/ S2: 63.65 / 63.50 R1/R2:63.80 /63.90
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.

First Published on Jan 12, 2018 10:59 am
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