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Sell USDINR; target of 73.25 - 73.15 : ICICI Direct

ICICI Direct The rupee largely remained range bound last week between 73 and 73.50 levels amid high volatility due to global cues.
Oct 19, 2020 / 08:49 AM IST

ICICI Direct's currency report on USDINR

Spot Currency

The rupee largely remained range bound last week between 73 and 73.50 levels amid high volatility due to global cues. Renewed fears of a lockdown have triggered a sharp decline in equities but the rupee has shown significant resilience • The dollar index further gained momentum triggered by risk-off sentiments, which pulled the index towards 93.8 levels. A stalemate on a new Covid relief package has also triggered some strength in the dollar.

Currency futures on NSE

Due to ongoing pressure in risk assets, the dollar index has started gaining strength once again. A move above 94.20 may open the gates for further upsides towards 95 levels that might take the rupee towards 74. However, we believe the rupee will find a strong hurdle around these levels • The dollar-rupee October contract on the NSE closed near 73.42 in the last session. The open interest increased by 4.5% in the last session.

Intra-day strategy 

US$INR Oct futures contract (NSE)View: Bearish on US$INR
Sell US$ in the range of 73.52-73.56Market Lot: US$1000
Target: 73.25/ 73.15Stop Loss: 73.64
Support: 73.25/73.15Resistance: 73.65/73.75

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: Oct 19, 2020 08:49 am

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