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Last Updated : Mar 19, 2019 11:05 AM IST | Source: Moneycontrol.com

Sell USDINR; target of 68.55 - 68.45: 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 sustained sharp gains to end higher at 68.53 against the US$, rising for a sixth consecutive day. Weakness in the US$ along with a sharp rise in domestic equities is supporting the rupee • The dollar was mildly lower against major currencies ahead of US FOMC policy meeting. Market expectations are the Fed would continue to hold a dovish stance while any change from the same could result in sharp gains in the dollar. Investors await details on Brexit update as time is running out for the UK. The British Pound is expected to gyrate wildly as with only 10 days for the actual Brexit date the UK Parliament members continue to remain divided.

Benchmark yield

Sovereign treasury yields declined mildly to 7.32% as muted global yields and lower inflation kept yields in a range. Domestic retail inflation for February rose to 2.57%. Crude oil price strength could weigh on domestic debt • US treasury yields rose to 2.60% while worsening global growth expectations could cap rising yields. Incoming economic data remains important for further signals.

Currency futures on NSE

The dollar-rupee March contract on the NSE was at 68.63 in the previous session. March contract open interest declined 4.91% in the previous session • 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$INR March futures contract (NSE) View: Bearish on US$INR
Sell US$ in the range of 68.74 -68.80 Market Lot: US$1000
Target: 68.55 / 68.45 Stop Loss: 68.93
Support Resistance
S1/ S2: 68.55 / 68.40 R1/R2:68.75 /68.90
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 Mar 19, 2019 11:05 am
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