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Mar 07, 2013, 09.39 AM IST | Source: Moneycontrol.com

Positive trend may continue in Rupee: Karvy

Karvy Stock Broking has come out with its report on currency. According to the research firm, the Doji candle stick formation on daily chart is indication strong support at lower levels. For today, expect Rupee could continue its positive trend.

Karvy Stock Broking has come out with its report on currency. According to the research firm, the Doji candle stick formation on daily chart is indication strong support at lower levels. For today, expect Rupee could continue its positive trend.

On Wednesday, the rupee appreciated 0.36% to close at 54.70 against USD, taking cues from positive domestic indices.   Both Asian equities and currencies ended on higher on the speculation of BOJ meeting. The similar trend has followed by domestic indices, Sensex rose by 0.57% to close at 19252.61 and Nifty inched up by 0.59% to close at 5818.6.   The euro area GDP remained on negative territory along with Government spending. This had supported downside in shared currency euro and European equities. The euro moved down by 0.65% to close at %1.2967. 

Outlook:

This morning Asian’s equities and currencies are trading mix. Last night the shared currency euro fell around 0.65% while today it is trading on a slightly positive note of $1.2985, up by 0.15% and that may reflect on rupee during opening. The spread has narrowed between US and Indian bond yield from 0.241 to 0.2465 that may weigh down on rupee in today’s market. Going ahead, the markets are eagerly waiting for BOE and ECB interest rate decision. On the speculation of BOE and ECB meeting we could see optimism in the global markets. The other key data to watch out are US trade balance and nonfarm productivity which is expected to decline and that may pressurize USD. Overall we expect rupee to open on a weak note while during the day it may restrict the losses on the back positive economic releases from Germany which is likely to support euro.

USDINR Spot:
 
Rupee witnessed a see-saw trading session on Wednesday. In the initial hours it tested support low‘s of 54.60 and thereafter it made a high of 54.89. On daily chart pair witnessed strong supports of 8 period moving average and showed a re-bounce from the same. The Doji candle stick formation on daily chart is indication strong support at lower levels. For today, we expect Rupee could continue its positive trend.

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READ MORE ON  Karvy Stock Broking, Rupee, USDINR

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