Last Updated : Jan 11, 2019 11:29 AM IST | Source:

Sell USDINR; target of 70.40 - 70.30: ICICI Direct

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

Representative image
Representative image

ICICI Direct's currency report on USDINR

Spot Currency

The rupee ended mildly higher in yesterday’s session as strength in major currencies against US$ as well as mild profit booking in the US$INR pair. It is expected to open at the same levels while recent gains in crude oil prices would remain under focus in the near term • The dollar recovered some of its losses by the end of the day amid profit booking in British Pound and Euro. Fed’s dovish comments have fed into dollar profit booking in the last few sessions. Going forward, US CPI data in backdrop of lower oil prices and GDP data would remain main triggers for investors to assess the Fed’s rate hike prospects.

Benchmark yield

Sovereign bond yields rose recently tracking a recovery in oil prices as well as concerns over fiscal slippage ahead of general elections this year • US treasury yields remain largely in a range although off from recent highs as concerns over US economy’s growth prospects have increased.

Currency futures on NSE

The dollar - rupee January contract on the NSE was at 70. 54 in the previous session. January contract open interest declined 14. 23 % 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$INR January futures contract (NSE) View: Bearish on US$INR
Sell US$ in the range of 70.65 -70.73 Market Lot: US$1000
Target: 70.40 / 70.30 Stop Loss: 70.85
Support Resistance
S1/ S2: 70.45 / 70.30 R1/R2:70.70 /70.85

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 Jan 11, 2019 11:29 am
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