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Sell USDINR; target of: 74.80 – 74.70: ICICI Direct

Sell USDINR; target of: 74.80 – 74.70: ICICI Direct
April 20
11:09 2021

ICICI Direct, On the back of rising Covid-19 cases and expected lockdown in states, the rupee depreciated and moved towards 75 levels in intraday.

April 20, 2021 / 09:13 AM IST

ICICI Direct’s currency report on USDINR

Spot Currency

On the back of rising Covid-19 cases and expected lockdown in states, the rupee depreciated and moved towards 75 levels in intraday. However, towards the end, it settled 50 paise lower near 74.88 • The Dollar index moved to a one and a half month low as the Euro gained on eurozone vaccine optimism. The dollar continues to be undercut by the ongoing Covid pandemic that has slowed economic growth and is dovish for Fed policy.

Currency futures on NSE

The recent fall in the rupee can be attributed more towards rising cases of Covid-19 but other EM currencies are appreciating against the dollar. As the Dollar index has moved to a new one month low, we feel the rupee should appreciate and move towards 74.60 levels • The dollar-rupee April contract on the NSE was at Rs 74.96 in the last session. The open interest fell 14.7% for the April series.

Intra-day strategy 

US$ INR January futures contract (NSE)View: Bearish on US$ INR
Sell US$ INR in the range of 75.08-75.12Market Lot: US$ 1000
Target: 74.80/ 74.70Stop Loss: 75.25
 Support: 74.40/74.20Resistance: 75.00/75.35

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