ICICI Direct, Overall volatility continued to decline in the rupee as it approached expiry week.
January 27, 2021 / 10:04 AM IST
ICICI Direct’s currency report on USDINR
Spot Currency
Overall volatility continued to decline in the rupee as it approached expiry week. In the last session, after initial bounce it ended 4 paise higher. We feel its likely to trade in the range • Ahead of the comments from Fed chairperson, the Dollar index remained in a range. However, it continued to trade above 90 levels. We feel volatility would be higher in the index as traders would be watching developments on stimulus.
Currency futures on NSE
US$ INR pair is consolidating near its sizeable Put OI base of 73. Looking at the declining volatility, we feel the rupee is likely to trade in range and any visible bounce towards 73.15 should be used to create short position • The dollar-rupee January contract on the NSE was at Rs 72.94 in the last session. The open interest fell 8.9% in the current series while February series saw an increase of over 46% in open interest.
Intra-day strategy
| US$ INR JAN futures contract (NSE) | View: Bearish on US$ INR |
| Sell US$ INR in the range of 73.10-73.13 | Market Lot: US$ 1000 |
| Target: 73.00/ 72.90 | Stop Loss: 73.22 |
| Support: 72.95/72.85 | Resistance: 73.30/73.45 |
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