Last Updated : Aug 08, 2018 11:45 AM IST | Source:

Sell USDINR; target of 68.75 - 68.65: 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 recovered against the US $ even as the dollar witnessed profit booking against major currencies . A halt in Chinese Yuan depreciation is positive for EM currencies including the rupee • The US $ witnessed mild profit booking in the backdrop of gains in the Euro . The GBP and JPY remained steady against the dollar . Investors tracked the recent announcement by the Trump administration that it will slap tariffs on another $ 16 billion of Chinese imports later in August . China has also announced it will impose counter tariffs on equivalent US imports into China.

Benchmark yield

Sovereign bonds declined as yields rose mildly but largely remained in a range . A recovery in crude oil prices may see yields rising in the near term • US sovereign 10 - year bond yields rose mildly even as the Trump administration has announced it may slap tariffs on $ 16 billion of Chinese imports by August end . Traders would track the trade rift closely as its spills to the next phase.

Currency futures on NSE

The dollar - rupee August contract on the NSE was at 68 . 85 in the previous session . August contract open interest declined 0 . 03 % in 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$INR August futures contract (NSE) View: Bearish on US$INR
Sell US$INR in the range of 68.89-68.95 Market Lot: US$1000
Target: 68.75 / 68.65 Stop Loss: 69.08
Support Resistance
S1/ S2: 68.80 / 68.65 R1/R2:68.95 /69.10
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.

First Published on Aug 8, 2018 11:45 am
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