Buy USDINR; target of: 74.35 – 74.50 : ICICI Direct

Currencies

ICICI Direct, Overall trading range continued for the rupee, which has been consolidating below 74 levels for a couple of sessions.

May 06, 2021 / 10:08 AM IST

ICICI Direct’s currency report on USDINR

Spot Currency

Overall trading range continued for the rupee, which has been consolidating below 74 levels for a couple of sessions. Yesterday, it fell 6 paise and ended near 73.91 levels • The Dollar index moved to a two week high post US treasury secretary comments on fiscal spending. However, gains in the dollar were limited due to weaker-than-expected economic data.

Currency futures on NSE

As the Dollar index has managed to move to a two-week high, we feel the US$ INR pair should move towards 74.5 levels as it is near its sizeable Put base • The dollar-rupee April contract on the NSE was at Rs 74.20 in the last session. The open interest fell 4.3% for the May series.

Intra-day strategy 

US$ INR May futures contract (NSE) View: Bullish on US$ INR
Buy US$ INR in the range of 74.17-74.20 Market Lot: US$ 1000
Target: 74.35/ 74.50 Stop Loss: 74.00
 Support: 74.00/74.20 Resistance: 74.60/75.00

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