Sell USDINR; target of 70.55 - 70.45: ICICI Direct

ICICI Direct's currency report on USDINR

Spot Currency

The rupee ended the session with sharp gains at 70.72 ending higher by almost 45 paise against the US$ as improved risk sentiment as well as expectation of positive flows in domestic markets supported the rupee. It is expected to open on a further higher note today tracking global cues • The dollar retraced from its crucial resistance levels near 97 as a rebound in Euro and GBP weighed. Traders would be tracking developments on the Brexit front as any positive news on the same would provide a further flip to risk assets.

Benchmark yield

Sovereign treasury was unchanged at 7.36% as muted global yields and lower inflation have kept yields in a range. Domestic retail inflation fell to 2.05% in January 2019, which could provide further space for RBI to cut rates • US treasury yields rose to 2.69% while worsening global growth expectations could cap sharply rising yields. Incoming economic data remains important for further signals.

Currency futures on NSE

The dollar-rupee February contract on the NSE was at 70.87 in the previous session. February contract open interest increased 0.58% in the previous session • We expect the US$INR to meet supply pressure at higher levels. Utilise upsides in the pair to initiate short positions.

Intra-day strategy 

US$INR February futures contract (NSE)	View: Bearish on US$INR
Sell US$ in the range of 70.82 -70.88	Market Lot: US$1000
Target: 70.55 / 70.45	Stop Loss: 71.01
Support	Resistance
S1/ S2: 70.65 / 70.5	R1/R2:70.90 /71.05

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 First Published on Feb 13, 2019 11:31 am