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Last Updated : Jan 24, 2019 12:23 PM IST | Source: Moneycontrol.com

Sell USDINR; target of 71.15 - 71.05: ICICI Direct

ICICI Direct expects USDINR to find supports at lower levels. Utilise downsides in the pair to initiate long positions.

ICICI Direct's currency report on USDINR

Spot Currency

The rupee ended higher yesterday but pared much of the intra - day gains. It is expected to open a tad higher today tracking a recovery in major currencies as well as lower - than - expected fiscal worries • The dollar extended further losses as the GBP remains upbeat over prospects of extension of the Brexit date and unanimity among UK Parliament members to avoid a hard Brexit . However, it still remains immune to sharp declines if uncertainty persists as we near the actual Brexit date in March as of now.

Benchmark yield

Sovereign treasury yields declined to 7. 29 % even as news of a lower - than - expected farm relief package should support a relief rally in domestic debt • US treasury yields were unchanged as investors remain concerned on slowing growth as well as outcome from US - China trade talks . However, investors would be tracking the upcoming Fed monetary policy meeting in the backdrop of lower expectation of faster rate hikes.

Currency futures on NSE

The dollar - rupee January contract on the NSE was at 71. 38 in the previous session. January contract open interest declined by 3. 26 % in the previous session • We expect the US $ INR to face 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 71.36 -71.42 Market Lot: US$1000
Target: 71.15 / 71.05 Stop Loss: 71.55
Support Resistance
S1/ S2: 71.25 / 71.10 R1/R2:71.40 /71.60
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 Jan 24, 2019 12:23 pm
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