Moneycontrol
Last Updated : Apr 06, 2018 11:25 AM IST | Source: Moneycontrol.com

Sell USDINR; target of 64.90 - 64.84: ICICI Direct

ICICI Direct expects USDINR to meet supply resistance at higher levels. Utilise upsides in the pair to go short in USDINR.

ICICI Direct's currency report on USDINR

Spot Currency

The rupee gained sharply against the US$ as a rebound in domestic equities along with a recovery in risk on sentiment aided gains in most emerging currencies, including the rupee • The US $ posted a decent recovery against majors as the US and China signalled towards reconciliatory talks amid escalating risks of trade wars . However, post that the US President has indicated at further imposing tariffs on $ 100 billion of Chinese imports into the US. Euro and JPY stumbled as the US $ recovered. We expect Euro to decline further amid slumping inflation growth in Euro.

Benchmark yield

Sovereign bond yields fell sharply as bonds rallied amid a recovery in risk - on sentiment as well as less - than - expected hawkish signals from RBI’s monetary policy meeting • US 10 - year yields rose to 2 . 83 % even as the US and China signalled towards soothing trade war rhetoric. US employment data for March would be keenly watched for further trends in US yields and US$.

Currency futures on NSE The near - month dollar - rupee April contract on the NSE was at 65.10. The April contract open interest increased 6.83 % from the previous day • We expect US$INR to meet supply resistance at higher levels. Utilise upsides in the pair to go short in US$INR.

Intra-day strategy

US$INR April futures contract (NSE) View: Bearish on US$INR
Sell US$INR in the range of 65.10 - 65.16 Market Lot: US$1000
Target: 64.90 / 64.84 Stop Loss: 65.28
Support Resistance
S1/ S2: 65.0 / 64.80 R1/R2:65.15 /65.30
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 Apr 6, 2018 11:25 am
Loading...
Sections
Follow us on
Available On