Rupee may trade strong today; sell on pullback: Karvy

Indian rupee should open strong this morning may be by around 40 to 50 paisa. Asian’s are trading over a one per cent higher; euro currency is approaching to test $1.3300. This is a rejoice after the discussions about fiscal cliff where uncertainties still prevailing at its decision. This should play out a major factor for the day and in this regard rupee should continue to trade strong. From the data front we have PMI manufacturing figures of India and some from euro in the form of PMI numbers and few data from US. Perhaps they should not be playing major role during the day. Overall, we expect rupee to trade strong for the day

USD/INR Spot
On Tuesday, after opening with gap down at 54.77 it recovered all its losses in the late session of the day and finally settled at 54.98 gaining 0.39%. USDINR made firm close above the major EMA’s of (8, 21 and 34) on daily chart. Today we expect USDINR to open with a gap down and if it manages to sustain below major supports of 54.58 we could expect it to test lower levels of 54.17 in a span of couple of days. For the day we recommend to sell on pull backs and supports are seen at 54.17 then 54.03 and resistances are witnessing around 54.60 then 54.75.

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