Buy rupee around 54.91-54.88; target 55.25: Karvy
Karvy Stock Broking has come out with its report on currency. According to the research firm, for the day one can buy rupee near the support level of 54.91-54.88 level for the target of 55.25 levels.
December 26, 2012 / 11:49 IST
Karvy Stock Broking has come out with its report on currency. According to the research firm, for the day one can buy rupee near the support level of 54.91-54.88 level for the target of 55.25 levels.
European markets are closed today due to Boxing Day holiday so neither major movement nor any economic data expected from euro area. So, Indian rupee may primarily be driven by the Asian markets performance. This morning Asian markets are trading marginally up while spot euro currency is trading almost flat. Therefore, rupee may open on a flat note or with a marginal gain. As the day progresses rupee could remain lull however, ahead of positive economic releases from US may have preemptive negative pressure on rupee. The data from US in the form of Caseshiller home price index and Richmond Fed Manufacturing Index are expected. We believe rupee may trade weaker against the US dollar. Technical call: Future: Buy at 54.90-54.88 TP 55.20 then 55.35 SL 54.70USD/INR Spot
On Monday, USDINR opened at 55.05 and hit intraday high of 55.21, there after it turned negative and closed lower losing 0.20% at 54.95. At present pair is trading just above the 50% retracement level for the range 56.10-54.22. Momentum indicator RSI is hovering in the same range of quite few days and is not indicating any clear trend in the pair. For the day we expect USDINR to open marginally higher and could see slight decline in the later part till the supports of moving averages. For the day we recommend to buy near the support level of 54.91- 54.88 level for the targets of 55.25 levels.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.To read the full report click on the attachment 
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