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Last Updated : Oct 16, 2020 10:21 AM IST | Source: Moneycontrol.com

Sell USDINR; target of 73.35 - 73.25 : ICICI Direct

ICICI Direct After an initial up move, the rupee depreciated sharply and moved lower against the US dollar.

ICICI Direct's currency report on USDINR

Spot Currency

After an initial up move, the rupee depreciated sharply and moved lower against the US dollar. Sharp selling in equities along with rising cases of Coronavirus globally triggered panic selling • The dollar index further gained momentum triggered by risk of sentiments, which pulled the index towards 94 levels. US initial claims rose more than expected by 898,000 week on week.

Currency futures on NSE

As there was a risk of sentiment trades, which pushed the dollar index sharply higher, profit booking was seen in the rupee due to which it depreciated. However, we feel the rupee has moved near its supply zone and the spread between spot and future has risen. The rupee could appreciate again and move towards 73.25 levels • The dollar-rupee October contract on the NSE closed near 73.51 in the last session. The open interest fell 1.33% in the last session.

Intra-day strategy 

US$INR Oct futures contract (NSE)View: Bearish on US$INR
Sell US$ in the range of 73.55-73.60Market Lot: US$1000
Target: 73.35/ 73.25Stop Loss: 73.71
Support: 73.25/73.15Resistance: 73.65/73.75
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First Published on Oct 16, 2020 10:21 am