Sell USDINR; target of 74.80 - 74.70 : ICICI Direct

ICICI Direct Profit booking is clearly visible in the US$INR at higher levels. Looking at the declining Dollar index, we feel EM currencies would appreciate •

July 28, 2020 / 06:31 PM IST

ICICI Direct's currency report on USDINR

Due to muted domestic equites and concerns over geopolitical developments, the rupee ended flat given its morning gains. However, we continue to feel 75 level could be a possible hurdle for the rupee • The weakness in the Dollar index continued as it slipped towards its two years low on news of another round of stimulus to boost the US economy.

Outlook

Profit booking is clearly visible in the US$INR at higher levels. Looking at the declining Dollar index, we feel EM currencies would appreciate • The dollar-rupee contract on the NSE was at 74.82 in the last session. The open interest fell 8.5% in the last session

Intra-day strategy

US$INR Jul futures contract (NSE)	View: Bearish on US$INR
Sell US$ in the range of 74.95-75.00	Market Lot: US$1000
Target: 74.80/ 74.70	Stop Loss: 75..10
Support: 74.60/74.70	R1/R2:68.25/68.45

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