ICICI Direct's currency report on USDINR
Spot Currency
The rupee continued to lack volatility for a third day in a row and witnessed a narrow trading range. It ended the week almost flat at 72.98. However, we feel it is likely to trade in a range with the hurdle now at the 73.25-73.35 range • Dollar index continues to gain momentum and remained firm above 90 level. However, it fell from the weekly high. Major support for the index is now at 89.90 level.
Currency futures on NSE
US$INR pair is consolidating near its sizeable Put OI base of 73. Looking at the declining volatility, we feel the rupee is likely to trade in range and any visible bounce towards 73.15 should be used to create short position • The dollar-rupee January contract on the NSE was at Rs 72.96 in the last session. The open interest fell by 2.8% in the current series while February series saw an increase of over 60% in open interest.
Intra-day strategy
| US$INR JAN futures contract (NSE) | View: Bearish on US$INR |
| Sell US$INR in the range of 73.12-73.15 | Market Lot: US$1000 |
| Target: 73.00/ 72.90 | Stop Loss: 73.25 |
| Support: 72.95/72.85 | Resistance: 73.30/73.45 |
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