Oct 10, 2017 11:03 AM IST | Source:

Sell USDINR; target of 65.30 - 65.20: ICICI Direct

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

ICICI Direct's currency report on USDINR

Debt market

Government bon ds fell for a fourth day as investors sold notes amid  weak sentiment after a hawkish monetary policy stance by the central  bank last week • The  GoI benchmark  6.79 % 2027 bond yield rose to 6.78%  from  6.76% in the previous session • Yield on  the  US10 - year yield was steady at 2.36 % in  the  previous  session.

Forex (US$/INR)

The rupee eked out modest gains, rising for a first time in three sessions against the US$, even as the US$ fell against major currencies • The US$ witnessed mild profit booking against major currencies. Contraction in job creation coupled with a stronger Euro weighed on the US$. The British pound gained sharply on a recent uptick in inflation coupled with rising labour wages. Such upbeat data may see BoE moving earlier than expected to raise interest rates that is bullish for GBP.

Strategy In the currency futures market, the near month dollar - rupee October contract on the NSE ended at 65.54. The October contract open interest  declined 1.56 % from the previous day • November contract open interest  increased 3.78 % in the  previous session • We expect  the US$ to meet supply pressure at higher levels . Utilise up side in the pair to go short on the US$INR.

Intra-day strategy

US$INR October futures contract (NSE) View: Bearish on US$INR
Sell US$INR in the range of 65.45-65.55 Market Lot: US$1000
Target: 65.30 / 65.20 Stop Loss: 65.65
Support Resistance
S1/ S2: 65.40 / 65.20 R1/R2:65.55 /65.75
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.

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