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Last Updated : Jan 24, 2017 10:41 AM IST | Source: Moneycontrol.com

Sell USDINR; target of 67.90 - 67.70: ICICI Direct

ICICI Direct expects US dollar to meet supply pressure at higher levels. Utilise upsides in the dollar to go short on the USDINR. Sell January Futures with a target of 67.90 - 67.70.

ICICI Direct's report on currency

Debt market  
Government bonds rose as investors lapped up debt due to receding  faster rate hike risks in the US  • The benchmark 6.97% 2026 bond yield fell to 6.45% from 6.47% on  Monday as rate hike fears in the US subsided  • Yield on the US 10-year yield fell sharply to 2.40% from 2.47% as details  on infrastructure spending remain scant  

Forex (US$/INR)  
The rupee ended steady as a weak US dollar against major currencies  and rising crude oil prices amid cautious sentiment ahead of the Budget  day keep the rupee in a narrow range  • The US$ continued to slide against major currencies as the US President  passed an executive order to cancel the Trans-Atlantic Trade Pact.  However, rate hike comments from Fed officials limited losses in

US$  US$/INR derivatives strategy  
In the currency futures market, the most traded dollar-rupee January  contract on the NSE ended at 68.24.  The January contract open interest  fell 1.80% from the previous day  • February contract open interest rose 9.88% from previous day  • We expect the US dollar to meet supply pressure at higher levels. Utilise  upsides in the dollar to go short on the US$INR pair  

Intra-day strategy
US$INR January futures contract (NSE)View: Bearish on US$INR
Sell US$INR in the range of 68.15 - 68.25Market Lot: US$1000
Target: 67.90 / 67.70Stop Loss: 68.35
SupportResistance
S1/ S2: 67.90 / 67.70R1/R2:68.20 /68.40







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.

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First Published on Jan 24, 2017 10:41 am
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