Moneycontrol
Feb 14, 2018 11:43 AM IST | Source: Moneycontrol.com

Sell USDINR; target of 64.20 - 64.14: ICICI Direct

ICICI Direct expects USDINR to meet supply pressure at higher levels. Utilise upsides in the pair to initiate short positions.

ICICI Direct's currency report on USDINR

Spot Currency

The rupee posted its biggest single - session rise in more than two weeks against the US$ on Monday, tracking gains in domestic equities amid low volumes in a holiday - truncated week • The US$ fell against major currencies as a reversal in major weighed on dollar . GBP gained over rising UK core inflation raising expectations of earlier - than - expected interest rate hike . Recovery in global equities led profit booking in US$ ahead of US inflation data . JPY is on course to test six - months highs near 107 . 30 . However, higher US inflation data may see a sharp reversal in the US$.

Benchmark yield

Sovereign bonds fell on Monday on a fresh supply of state government debt and amid rising US Treasury yields • US 10 - year yields declined to 2 . 83 % from 2 . 86 % amid a recovery in equities ahead of US inflation data.

Currency futures on NSE The near month dollar - rupee February contract on the NSE was at 64 . 43 . The February contract open interest declined 0 . 47 % from the previous day • We expect the US$ INR to meet supply pressure at higher levels . Utilise upsides in the pair to initiate short positions.

Intra-day strategy

US$INR Feb futures contract (NSE) View: Bearish on US$INR
Sell US$INR in the range of 64.35 - 64.41 Market Lot: US$1000
Target: 64.20 / 64.14 Stop Loss: 64.53
Support Resistance
S 1/ S 2: 64.32 / 64.24 R 1/R 2:64.50 /64.60
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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