Currency Futures: Know the daily, weekly outlook, trading strategy for USDINR futures, spot from experts

After appreciating in the past few sessions rupee came under some pressure against the USD primarily on the back of short covering. However, the near term situation for INR is likely to remain strong, Senior Technical Analyst Anuj Gupta said adding that the Indian Equity markets have been trading strongly helping the cause of the Indian rupee.

Meanwhile, RBI monetary policy announcements due on Friday will have a bearing on it. Market participants will be keeping an eye on the RBI policy statement, Amit Sajeja, Vice President -Research, Commodity and Currency at Motilal Oswal said. The Central Bank is likely to keep rates unchanged. 

The focus will be on the governor’s commentary on rates and inflation. 

Among other key indicators, the economic indicators will continue to remain important, Gupta said. As per the IHS Markit figures released today, the Indian Services PMI index at 54.1 has seen an upwards trend from 53.7. This pointed to a sustained recovery in business activity in November supported by an upturn in new work intakes, while employment rose for first time since Feb.  

On Dollar strength: 

Sajeja said that the USD Dollar continued to remain under pressure. In the next couple of sessions market participants will be keeping an eye on the employment numbers and better-than-expected number could restrict downside for the greenback, he said. 

At 4:26 pm, the USDINR December Futures were trading at 73.86, down by almost 0.4 per cent.  

Anuj Gupta Trading Strategy on Thursday 

Gupta of Angel Broking recommended a Buy on USDINR Futures at 73.90 levels. He puts the stop loss at 73.70 and the target price at 74.40. He said that the spot price was around 73.88. 

Amit Sajeja’s Weekly Trading Strategy 

On the intraday basis, USDINR (Spot) to expected to trade lower and quote in the range of 73.40 and 73.80, Sajeja said. 

Weekly Expiry on 4 December 2020 - USDINR Sell 74.25CE/SELL 73.25PE 

Weekly Expiry on 4 December 2020 - USDINR Sell 73.25PE/SELL 73.75CE   

Monthly Expiry on 29 December 2020 - USDINR Sell 75.25CE/SELL 72.50PE  

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Outlook for other currencies by Sajeja  

EURINR (DECEMBER) – The pair is likely to continue its upward trend with likely test at 89.50. Buying on dips is advised.  

GBPINR (December) – The pair is likely to trade in a lower range between 98.90 and 98.20 with a negative bias.  

JPYINR (December) – The pair is likely to trade in the range between 70.90 and 70.40