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Last Updated : Jul 12, 2018 12:19 PM IST | Source: Moneycontrol.com

Sell USDINR; target of 68.70 - 68.65: ICICI Direct

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

Broker Research @moneycontrolcom

ICICI Direct's currency report on USDINR

Spot Currency

The rupee ended mildly higher yesterday amid ranged movement. The currency may sustain gains as a sharp decline in crude prices may provide some cushion to increased risks of spiralling deficit The USD was sharply higher as US administration announcement to impose additional follow on tariffs on Chinese imports has escalated risks of global trade war. US plans to impose duties on $ 200 billion of Chinese imports scheduled to take effect after August 30. JPY will remain in focus in the backdrop of rising global trade risks.

Benchmark yield

Sovereign bond yields declined to 7. 87 % in the previous session as steady oil prices in the last few sessions and a stalling rupee depreciation provided some respite to domestic debt US sovereign 10 - year yields was unchanged at 2. 85 % even as the US administration has announced plans to impose additional 10 % tariffs on Chinese imports worth $ 200 billion scheduled to take effect after August 30.

Currency futures on NSE

The dollar - rupee July contract on the NSE was at 68. 93 in the previous session. July contract open interest declined 1. 28 % in the previous day We expect the USD INR to meet supply pressure at higher levels. Utilise upsides in pair to initiate short positions.

USDINR Strategy
USDINR July futures contract (NSE)
Sell USDINR in the range of 68.90 - 68.96 Market Lot: USD1000
Target: 68.70 / 68.65 Stop Loss: 69.10
Support Resistance
S1/ S2: 68.80 / 68.65 R1/R2:69.10 /69.25

 

 

 

 

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First Published on Jul 12, 2018 12:19 pm
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