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Last Updated : May 07, 2019 11:17 AM IST | Source: Moneycontrol.com

Sell USDINR; target of 69.40 - 69.30: 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 ended on a weaker note on Monday tracking fragile risk sentiments following the US President’s tariff threat on Chinese imports. Overall, the rupee is likely to trade in a range ahead of the general election outcome as well as steady oil prices • The dollar index was almost unchanged in the previous session. The US$ move remains anchored to the Fed’s stance on US interest rate hike trajectory. The Euro continues to hover around key levels of 1.12. Reducing US interest rate cut probabilities is supporting the US$. A move in Chinese Yuan remains key for EM currencies in the backdrop of escalation of tariff concerns.

Benchmark yield

Government bonds remained unchanged in yesterday’s session. Overall, it is expected to trade in a range in the backdrop of cool-off in rising oil prices as well as outflows seen in domestic debt markets • US treasury yields declined yesterday as investors were spooked by the US President’s announcement to increase the rate of tariffs on Chinese imports.

Currency futures on NSE

The dollar-rupee May contract on the NSE was at 69.59 in the previous session. May contract open interest declined 2.28% 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$INR May futures contract (NSE) View: Bearish on US$INR
Sell US$ in the range of 69.65 -69.71 Market Lot: US$1000
Target: 69.40 /69.30 Stop Loss: 69.84
Support Resistance
S1/ S2: 69.45 / 69.20 R1/R2:69.75 /69.95
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.



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First Published on May 7, 2019 11:17 am
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