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Last Updated : Nov 04, 2019 09:30 AM IST | Source: Moneycontrol.com

Sell USDINR; target of 70.55 - 70.45: 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 higher note, up by 12 paise vs. the US$ amid improving global risk sentiment. It is likely to open further stronger today due to mild weakness in US$ as well as steady Chinese Yuan • The US$ index is trading further lower against major currencies amidst improved risk sentiment. Although the Fed has signalled it may not cut interest rates soon, positive hints from Fed regarding strength in US economy and improving global risk scenarios boosted EM currencies. Likely snap elections in the UK could provide fresh triggers to the Brexit saga. The CNY has appreciated towards 7.03 levels vs. US$. Strength in the same would help EM currencies contain sharp losses.

Benchmark yield

Domestic benchmark 10-year yields ended unchanged at 6.45% in the previous session. Domestic GST collection for October were at | 95380 crore, down 5.29% on a YoY basis • The US 10-year benchmark further extended losses to close higher at 1.71% in the previous session. Risk sentiments improved supporting US equities while yields are most likely to remain in a range.

Currency futures on NSE

The dollar-rupee November contract on the NSE was at 70.99 in the previous session. Open interest increased 8.60% 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$INR November futures contract (NSE)View: Bearish on US$INR
Sell US$ in the range of 70.83 -70.87Market Lot: US$1000
Target: 70.55 / 70.45Stop Loss: 71.03
SupportResistance
S1/ S2: 70.70 / 70.50R1/R2:70.85 / 71.05
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 Nov 4, 2019 09:30 am
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