Buy rupee with stoploss at 46.18: RR Financial

RR Financial Consultant has come out with its currency derivative report. According to research firm buy rupee at 46.25 with a stop loss at 46.18 and for target of 46.35.

RR Financial Consultant report:

Rupee: The Indian rupee rose to one-week highs on Wednesday, supported by a weaker dollar overseas and higher local share prices Neutral.

Dollar Index: The US Dollar Index is consolidating above support at 75; breakout would signal a decline to 74*. Momentum holding below zero indicates a strong down-trend (this is a new momentum indicator that will be released with the next beta version); the recent rise merely indicates consolidation. In the long term, the dollar is expected to test the 2008 low of 71. Recovery above 76.50 is unlikely, but would warn that the downtrend is ending. The weakening dollar continues to fuel rising crude oil and precious metal prices. Its supports seem near 75-75.20

Technical The short-term trend in rupee is down and the currency can decline to 46.7, 47 or 47.4 in the near term. Declines will get strong support around 47.5 where the 200-day moving average is positioned. Resistances in the days ahead would be at 46.1 and 45.746. Today range seen as 46.10---46.35

Outlook and Strategy: Equity market is expected to open flat today. Buy USDINR (Mcx- Nov fut.) @46.25. stop loss 46.18. target 46.35

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To read the full report click on the attachment