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Last Updated : Jan 20, 2017 10:37 AM IST | Source: Moneycontrol.com

Sell USDINR; target of 67.90 - 67.70: ICICI Direct

ICICI Direct expects USD 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 ended lower as rising yields weighed on demand ahead of the US presidential speech today  • The benchmark 6.97% 2026 bond yield rose to 6.48% from 6.45% the  previous day  • Yield on the US 10-year yield further  rose to 2.47% from 2.43% ahead of  today’s presidential inauguration speech.  

Forex (US$/INR)  
The rupee ended lower as markets participants remain wary ahead of the new US President’s inauguration speech  • Although the US$ ended slightly higher, it pared intra-day gains on US Federal Reserve’s chair comments that US Fed interest rate hike is not  behind the curve. Market participants gauged dovish comments and  preferred profit booking ahead of today’s US presidential inauguration  speech.  

US$/INR derivatives strategy  
In the currency futures market, the most traded dollar-rupee January  contract on the NSE ended at 68.19.  The January contract open interest  fell by 7.37% from the previous day  • February contract open interest rose 2.81% from previous day  • We expect the US$ 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 68.20 - 68.30Market Lot: US$1000
Target: 67.90 / 67.70Stop Loss: 68.40
SupportResistance
S1/ S2: 67.90 / 67.70R1/R2:68.25 /68.45







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First Published on Jan 20, 2017 10:37 am
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