Expect Indian Rupee to trade in 61.35-61.85 range: Karvy
Karvy Stock Broking has come out with its report on Indian rupee. According to the research firm, pair is expected to trade in a range of 61.35-61.85 for the day. One can the pair on declines.
August 07, 2013 / 11:39 IST
Karvy's research report on currency -
In today's session, most of the Asian equities are trading down by more than a percent, tracking the negative close of the US stock markets and Japanese equities. The euro is on a stronger note at 1.3296 and the Dollar is weak at 81.642. The 1 month dollar-rupee NDF contract is trading on a weaker note (down 0.15 percent) which could limit gains in the rupee. Therefore, the above factors may weigh down on the rupee during the opening. As the day progresses, the markets should watch for the Bank of Japan's two-day meet which starting today. From Germany, its industrial production data is expected to decline in the month of June, which may weigh down on the euro and thereby reflect on the rupee. The US will release its MBA mortgage application data, which is likely to decline. Overall, we expect the rupee to trade on a weaker note against the US dollar for the day.USD/INR-Aug-MCX-SX-NSEThe
Dollar-rupee pair closed higher on Tuesday at 61.56, a gain of 0.46 percent or 0.28 paisa. Earlier in the day it surged sharply higher to reach 62.11 where it couldn't sustain and then drifted sharply lower from the day's high led by profit booking. The Daily candlestick pattern depicts a shooting star formation, suggesting strong resistance prevailing at the above mentioned levels and a possible reversal could only take place only on a sustained trade below the 61.26 levels .However on the daily chart the Up-trendline continues to bode well for the pair .A sustained trade above the same could continue to propel the pair higher. The Resistance is at 61.65 followed by 61.85 levels. The Support is at 61.18 followed by 60.97 levels. Overall we could expect the pair to trade in a range of 61.35-61.85 levels for the day and recommend to buy on declines.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. 
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