ICICIdirect.com's report on currency
Forex (US$/INR)
• The rupee rose to a more than two-month high against the dollar, as the ECB’s larger-than-expected stimulus fuelled a further rally in stocks. The same has also led to significant amount of foreign fund inflows into debt and equity markets
• The Indian currency ended the day at 61.42, up 0.45% from its previous close of 61.70
• The dollar index against six major currencies ended at 94.92, down 0.08% from its previous close of 94.99
US$/INR derivatives strategy: Sell January contract
• In the currency futures market, the most traded dollar-rupee January contract on the NSE closed at 61.46. The January contract open interest was up 2.01% from the previous day
• February contract open interest was up 13.79% from the previous day
• We expect the US dollar to meet resilience on rallies against the rupee. Utilise pullbacks in the US$/INR January contract to sell
Intra-day strategy
| US$/ INR Jan futures contract (NSE) | View: Bearish on US$ |
| Sell US$INR in the range of 61.87-61.97 | Market Lot: US$1000 |
| Target: 61.71-61.53 | Stop Loss: 62.07 |
| Support | Resistance |
| S1/ S2: 61.40/61.20 | R1/R2:61.75/61.95 |
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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