ICICI Direct, Post Union Budget 2021, overall volatility declined and the trading range further contracted.
February 03, 2021 / 09:20 AM IST
ICICI Direct’s currency report on USDINR
Post Union Budget 2021, overall volatility declined and the trading range further contracted. Positive domestic equites and huge inflows from FIIs would provide a cushion to the index • The Dollar index rose to a seven-week high as weakness in Euro continued after Coronavirus led to a drop in consumer spending. We feel EURUS$ would slip further, which will provide more boost to the Dollar index.
Currency futures on NSE
The US$ INR pair continued to hover around $ 73 post Budget also. A sharp sell-off in Euro would boost dollar due to which EM currencies are likely to depreciate. Sizeable Put base is also at 73 from where bounce is expected • The dollar-rupee February contract on the NSE was at Rs 73.22 in the last session. The open interest fell by 4.5% for the February series.
|US$ INR Feb futures contract (NSE)||View: Bullish on US$ INR|
|Buy US$ INR in the range of 73.12-73.15||Market Lot: US$ 1000|
|Target: 73.25/ 73.35||Stop Loss: 73.02|
|Support: 73.00/73.10||Resistance: 73.50/73.60|