Moneycontrol
Last Updated : Dec 07, 2018 11:10 AM IST | Source: Moneycontrol.com

Sell USDINR; target of 70.38 - 70.28: ICICI Direct

ICICI Direct expects USDINR to meet resistance at higher levels. Utilise upsides in the pair to initiate short positions.

ICICI Direct's currency report on USDINR

Spot Currency

The rupee weakened sharply yesterday amid concerns on steep oil supply cuts by Opec and other members . However, the meeting ended without a supply deal as Russia has not yet committed . The rupee is expected to open higher as a decline in oil price is positive for it • The US $ declined as risk sentiment improved amid ebbing risks of higher prices as of now . Investors will await US November employment details as well as Fed monetary policy meeting . Any dovish assessment shall see the dollar declining swiftly.

Benchmark yield

Government bonds extended gains as the RBI reduced its inflation target range while a more dovish than expected meeting supported domestic debt . Also, a decline in oil prices and a stable rupee is positive for domestic debt • US treasury yields declined as a slump in oil prices as well as a possibility of US - China trade resolution could create a hurdle for faster inflation growth.

Currency futures on NSE

The dollar - rupee December contract on the NSE was at 70 . 95 in the previous session . December contract open interest increased 1 . 09 % in the previous session • We expect the US$INR to meet resistance at higher levels . Utilise upsides in the pair to initiate short positions.

Intra-day strategy 

US$INR December futures contract (NSE) View: Bearish on US$INR
Sell US$ in the range of 70.62 -70.68 Market Lot: US$1000
Target: 70.38 / 70.28 Stop Loss: 70.81
Support Resistance
S1/ S2: 70.60 / 70.40 R1/R2:70.75 /70.90

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 Dec 7, 2018 11:10 am
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