Buy USDINR; target of: 73.90 – 74.00: ICICI Direct

An Edelweiss research report for Q4FY21 says road tonnage continued to improve, evident in e-way bill generation (up 6% QoQ) and improved core trucking rentals. “We estimate tonnage would increase by three–five percent for truckers. Asset-light plays Mahindra Logistics and TCI Express remain our preferred picks due to their ability to scale up/down as the environment demands,” the report said. Edelweiss is bullish on Blue Dart Express due to the pandemic-induced boom in e-commerce and its leaner cost structure. It has retained a ‘buy’ call on Mahindra Logistics, TCI Express and Blue Dart Express.

ICICI Direct’s currency report on USDINR

Spot Currency

After some intraday volatility and support at lower levels, the rupee ended at 73.42. Sell-off in equities had kept the rupee under pressure • The US dollar is holding on to its gains against a basket of major currencies on Thursday, after a surprisingly large rise in US consumer prices fanned inflation fears.

Currency futures on NSE

After April’s jump in US consumer prices buoyed the dollar, US Treasury yields and weakness in domestic equities may push the rupee move towards at 74 levels. • The dollar-rupee May contract on the NSE was at Rs 73.60 in the last session. The open interest rose almost 1% for the May series.

Intra-day strategy 

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