Sell USDINR; target of: 73.50 - 73.40: ICICI Direct

ICICI Direct, The rupee continued to strengthen and moved towards its major support level of Rs 73.50 once again.

December 28, 2020 / 08:41 AM IST

ICICI Direct's currency report on USDINR

Spot Currency

The rupee continued to strengthen and moved towards its major support level of Rs 73.50 once again. The Indian currency closed near Rs 73.54 levels, appreciating by almost Rs 22 paisa in spot • The dollar started weakening again after a round of risk aversion was seen in the early part of last week. The announcement of Brexit also provided further momentum to the GBP and Euro.

Currency futures on NSE

Due to fresh weakness in the Dollar index, the rupee started strengthening once again. We expect the pair to move below Rs 73.50 in the coming sessions as the dollar is likely to remain weak and move below Rs 90 levels • The dollar-rupee December contract on the NSE was at Rs 73.56 in the last session. The open interest declined marginally by 2% for the December series contract.

Intra-day strategy

US$INR DEC futures contract (NSE)	View: Bearish on US$INR
Sell US$INR in the range of 73.68-73.72	Market Lot: US$1000
Target: 73.50/ 73.40	Stop Loss: 73.82
Support: 73.50/73.40	Resistance: 73.82/73.95

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