Moneycontrol
Last Updated : Jan 03, 2018 10:41 AM IST | Source: Moneycontrol.com

Sell USDINR; target of 63.60 - 63.50: ICICI Direct

ICICI Direct expects US$ to meet supply pressure 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 fell for a second day as investors sold notes after a surge in crude oil prices triggered fears the inflation rate is likely to stay above the central bank’s target • The GoI benchmark 6. 79 % 2027 bond yield rose to 7. 3 9 % from 7. 34 % in the previous session • Yield on the US 10 - year benchmark bond rose to 2.4 6 % from 2.41% in the previous session.

Forex (US$/INR)

The rupee rose for a fourth straight session as gains due to US$  weakness outweighed losses triggered by oil - related outflow concerns • The  US$ fell below 92 - level as weakness against major as well as  emerging currencies  are weighing on  the  US$. Reversal in reflation trade in 2017, coupled with an initial setback to US President’s reforms agenda led to profit booking. The Euro continue d its unabated rise against the US$ as well as JPY as relative higher growth and QE pullback expectations is supporting common currency.

Strategy In the currency futures market, the near month dollar - rupee January contract on the NSE was at 63.67 . The January contract open interest increased 9.88 % from the previous day • February contract US$INR ended at 63.87. Open interest increased 9.60 % in the previous session • We expect the US$ 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 63.72 - 63.78 Market Lot: US$1000
Target: 63.60 / 63.50 Stop Loss: 63.91
Support Resistance
S1/ S2: 63.60 / 63.40 R1/R2:63.75 /63.95
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 3, 2018 10:41 am
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