ICICI Direct Despite strong equities and weakness in the US dollar, the rupee erased its early gains and closed almost flat.

ICICI Direct's currency report on USDINR

Spot Currency

Despite strong equities and weakness in the US dollar, the rupee erased its early gains and closed almost flat. We feel intraday volatility would be high for a few sessions • After posting the heaviest drop in two months, volatility remained high for the Dollar index. US Presidential election outcome would decide the fate of the Dollar index.

Currency futures on NSE

Rupee future has been consolidating near 74.5 levels for a few sessions. Due to higher volatility ahead of the US Presidential election outcome, OI is distributed in deep OTM strikes. We feel the rupee will also remain volatile in coming session and can move towards 75 levels • The dollar-rupee November contract on the NSE was at 74.52in the last session. The open interest fell by 0.3% for the November series contract.

Intra-day strategy

US$INR NOV futures contract (NSE)	View: Bullish on US$INR
Buy US$INR in the range of 74.35-74.40	Market Lot: US$1000
Target: 74.60/ 74.70	Stop Loss: 74.2
Support: 74.0/74.2	Resistance: 74.7/74.8

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.

First Published on Nov 4, 2020 09:31 am

Buy USDINR; target of 74.60 - 74.70: ICICI Direct

ICICI Direct Despite strong equities and weakness in the US dollar, the rupee erased its early gains and closed almost flat.

tags #Brokerage Recos - Currencies #Buy #ICICI Direct #Rupee #USDINR