ICICI Direct, The Nifty opened lower but recovered sharply from lower levels.
April 23, 2021 / 08:47 AM IST
ICICI Direct’s currency report on USDINR
Spot Currency
The Nifty opened lower but recovered sharply from lower levels. It closed near the day’s high of 14400. Significant volatility in the market has triggered closure among both Call, Put strikes last week. However, we expect the Nifty to find a hurdle near its series VWAP of 14600 • The Bank Nifty outperformed broader indices and lent much needed support to the Nifty to recover from lower levels. In banking, private sector banks outperformed PSU banks. As per options data, 32000 Call option has meaningful OI, which should act as immediate resistance.
Currency futures on NSE
The rupee has so far significantly underperformed its Asian peers and remained under pressure despite a weakening dollar. With the dollar expected to find fresh strength due to expected rise in corporate taxes, we expect the depreciation trend in the rupee to continue towards 76 levels • The dollar-rupee April contract on the NSE was at Rs 75.06 in the last session. The open interest rose 3% for the April series.
Intra-day strategy
| US$ INR January futures contract (NSE) | View: Bullish on US$ INR |
| Buy US$ INR in the range of 75.00-75.05 | Market Lot: US$ 1000 |
| Target: 75.45/ 75.70 | Stop Loss: 74.85 |
| Support: 75.00/74.40 | Resistance: 75.50/75.75 |
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