Monthly Forex & Commodities Outlook - September 2020 - ICICI Securities

View: Rupee to appreciate further towards 72.30 vs. dollar, gold to rise towards Rs. 56000

Positional Recommendations...

Sell US$INR

Sell US$INR September future around 74.00-74.10, Target: 72.30, Stop loss: 75.05

Rationale

We expect the rupee to appreciate further as consistent FII inflows in domestic equities along with continued weakening of the dollar due to near zero interest rates for the longer term will keep further pressure on the pair. US$INR futures have an immediate hurdle at 74.50 level. As long as it sustains below this level, we will see this appreciation trend continuing in the near term towards the next major support around 72.30 level.

Buy Gold

Buy Gold mini (GOLDMI) October future around Rs. 50650-50900, Target: Rs. 56000, Stop loss: Rs. 49300

Rationale

We believe gold prices will benefit as a perceived hedge against inflation and currency debasement triggered by the money printing by global central banks to ease the economic blow from the pandemic. Hence, we expect gold prices to bounce from current levels towards immediate target placed around Rs. 56000.

For details, click on the link below: https://www.icicidirect.com/mailimages/CommoditiesOutlook.pdf

Source : Equity Bulls

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