Buy USDINR; target of: 73.70 – 73.80 : ICICI Direct

Currencies

ICICI Direct, Due to a sharp sell-off in domestic equities and extension of restriction in few states, the rupee paused its upward trend and ended flat for the day •

May 12, 2021 / 09:41 AM IST

ICICI Direct’s currency report on USDINR

Spot Currency

Due to a sharp sell-off in domestic equities and extension of restriction in few states, the rupee paused its upward trend and ended flat for the day • The Dollar index further fell marginally and remained at a fresh two and a half month low as inflation concerns weighed on the dollar ahead of US consumer price data.

Currency futures on NSE

A sell-off in the Dollar index and weakness in domestic equities pushed the rupee to remain flat for the day. However, writing activity increasing in US$ INR Puts, we feel a bounce towards 74 levels cannot be ruled out • The dollar-rupee April contract on the NSE was at Rs 73.54 in the last session. The open interest rose almost 1.5% 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 73.48-73.51 Market Lot: US$ 1000
Target: 73.70/ 73.80 Stop Loss: 73.35
Support: 73.50/73.30 Resistance: 73.85/74.00

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