USDINR Futures: Ahead of Tuesday expiry, Motilal Oswal, IIFL analyst Anuj Gupta recommend 'sell' - check target price

USDINR September Futures were trading with a negative bias on Monday at 11:55 am. The strength in Rupee has been on the back of Dollar inflows and growing Foreign Direct Investment inflows (FDI), Expert Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities said. 

The USDINR futures were trading at 73.66, down 0.16 per cent from the Friday closing price. On Friday, the September USDINR futures ended at 73.77. Gupta expects the USDINR futures to trade between 73.50 and 74 on Monday. 

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Meanwhile, a Motilal Oswal report estimate the spot price to trade in the range between 73.40 and 74.05 throughout the day.  

Both, Gupta and this report recommend a Sell on the September USDINR futures ahead of the expiry on 28 September. Sell at 73.90 with a stop loss at 74.20 and target price at 73.40.  

Rupee consolidated in a narrow range for the whole of the last week despite the outcome of the Federal Open Market Committee (FOMC) policy statement, where the Federal Reserve left rates unchanged and announced it will likely begin reducing its monthly bond purchases as soon as November.  

“On Friday, volatility for the dollar also remained low as improved risk sentiment wiped out recent gains amid easing concerns about contagion from a potential China Evergrande Group default. China injected fresh cash into its financial system later last week as embattled property giant Evergrande announced it would make interest payments on an onshore bond,” the Motilal Oswal report said. 

Motilal Oswal recommends Sell 74CE / SELL 73.50PE. 

See strategy on some other currency futures:

EURINR (September) – EURINR was trading at 86.30 on Monday around at this time, down by 0.28 per cent from the previous closing price of 87.54. It attained a high of 86.49 on the intraday basis. Gupta recommends a Sell at 86.80 with a stop loss at 87.20 and target 86.  

GBPINR (September) – GBPINR was trading at 100.70 on Monday at the closing time, down by 0.29 per cent from the previous closing price of 100. It was also its intraday high. He recommended a buy at 100.40. He puts the stop loss at 100 while the target at 101.30. 

JPYINR (September) – JPYINR September Futures ended and was trading at 66.59, down by 0.33 per cent from the previous closing price of 66.81. It attained a high of 66.76 on the intraday basis. 

The expiry of September EURINR, GBPINR and JPYINR is on 28 September. 

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)