Buy USDINR; target of 68.35 – 68.45: ICICI Direct


ICICI Direct’s currency report on USDINR

Spot Currency

The rupee recovered some of its losses yesterday. However, it is expected to open lower today on account of the changing geopolitical dynamics on North Korea The US $ ended on a slightly lower note as the US Presidents displeasure over the outcome of China trade talks as well as the shadow over his meeting with the North Korean leader weighed on the dollar . JPY gained against US $ as well as other majors as Donald Trumps statement on doubts over his planned summit with the North Korean leader has supported safe haven appeal of JPY.

Benchmark yield

Sovereign bonds ended almost unchanged on the back of a cautious tone ahead of US Fed monetary policy meeting yesterday US 10 – year yields were unchanged as Fed meeting minutes showed a mixed signal . Although rate hike prospects remain firm, concerns over equality in job opportunities as well as concerns over financially struggling American citizens failed to lift yields.


Currency futures on NSE The near – month dollar – rupee May contract on the NSE was at 68. 09 in the previous session. The May contract open interest declined 4.40 % in previous day We expect the US$INR to find supports at lower levels. Utilise downsides in the pair to initiate long positions.

Intra-day strategy

US$INR May futures contract (NSE) View: Bullish on US$INR
Buy US$INR in the range of 68.12 – 68.18 Market Lot: US$1000
Target: 68.35/ 68.45 Stop Loss: 68.00
Support Resistance
S1/ S2: 68.0 / 67.90 R1/R2:68.30 /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.
Read More

Leave a Reply

Your email address will not be published.