Sell USDINR; target of: 73.10 – 73.00: ICICI Direct

Currencies

ICICI Direct, The rupee depreciated marginally and ended near 73.16 levels after depreciating almost 12 paise for the day.

May 20, 2021 / 09:41 AM IST

ICICI Direct’s currency report on USDINR

Spot Currency

The rupee depreciated marginally and ended near 73.16 levels after depreciating almost 12 paise for the day. The Dollar index recovered from its three month’s low and traded well above 90 levels again. Gains in the dollar accelerated after the release of the April 27-28 FOMC meeting minutes signalled some members would be open to the discussion of scaling back asset purchases.

Currency futures on NSE

As there was a sharp reversal in the Dollar index, the rupee depreciated from 73 levels. Declining crude oil prices and positive domestic equities should limit downsides and it could retrace towards 73.05 levels .The dollar-rupee May contract on the NSE was at Rs 73.26 in the last session. The open interest fell almost 2.7% for the May series.

Intra-day strategy 

US$ INR May futures contract (NSE) View: Bearish on US$ INR
Sell US$ INR in the range of 73.25-73.28 Market Lot: US$ 1000
Target: 73.10/ 73.00 Stop Loss: 73.40
Support: 73.15/73.00 Resistance: 73.40/73.60

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