Moneycontrol
Last Updated : Sep 14, 2018 11:24 AM IST | Source: Moneycontrol.com

Sell USDINR; target of 71.95 - 71.85: ICICI Direct

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

ICICI Direct's currency report on USDINR

Spot Currency

The rupee is expected to open higher against the dollar after lower - than - expected domestic consumer inflation as well as soft inflation reading in the US • Strengthening momentum started on Wednesday when the rupee jumped amid hopes of measures by policymakers. It could continue today due to a rally in Asian currencies on optimism over proposed trade talks between the US and China, lower crude oil prices and tepid consumer price inflation data.

Benchmark yield

Government bonds are likely gain as crude oil prices fell overnight and as domestic inflation slowed to a level below the central bank’s target. The retail inflation rate slowed to a 10 - month low of 3. 69 % in August • US treasury yields across maturities dropped after data showed US consumer prices rose less than expected in August, moderating expectations Fed will raise interest rates another two times in 2018.

Currency futures on NSE

The dollar - rupee September contract on the NSE was at 72. 29 in the previous session. September contract open interest declined 5. 93 % in the previous session • We expect the US$INR to witness selling pressure at higher levels. Utilise upsides in the pair to initiate short positions.

Intra-day strategy 

US$INR September futures contract (NSE) View: Bearish on US$INR
Sell US$INR in the range of 72.15 -72.20 Market Lot: US$1000
Target: 71.95 / 71.85 Stop Loss: 72.38
Support Resistance
S1/ S2: 71.95 / 71.60 R1/R2:72.35 /72.50
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 Sep 14, 2018 11:24 am
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