Buy Indian Rupee on decline, says Karvy
Karvy Stock Broking has come out with its report on Indian rupee. According to the research firm, the pair is expected to trade in a range of 61.10-61.75 for the day. One can buy on declines, says Karvy.
August 14, 2013 / 13:49 IST
Karvy's research report on currency -
In today's session, most of the Asian equities are trading up on the back of optimism of improving Chinese industrial output. However, the euro is on a weaker note at 1.3265 and the dollar is strong. The spread difference between the US and India's bond yield has widened from 0.31 to 0.32, which could further weaken the rupee. As the day progresses, the rupee may extend its weakness ahead of the release of India's wholesales price index data, which is expected to increase. Europe and Germany will release their second quarter GDP data, which is likely to improve and may limit the losses in the euro and could reflect on the rupee. In the evening, the US producer price index is likely to improve at a slower pace and may support the gain in the dollar. Overall, we expect the rupee to trade on a weaker note.USD/INR-Aug-MCX-SX-NSEThe dollar-rupee pair ended marginally higher on Tuesday at 61.32, a gain of 0.04 percent or 0.02 paisa. Earlier, the pair opened gap-up in the morning and surged sharply to reach 61.76, where it met resistance and drifted lower during the latter half of the session to reach a low of 60.98. Going by the Fibonnaci projections, the pair approached its 61.8 percent retracement level (60.99) of its two-day swing range (60.52-61.76). A sharp throwback at the aforementioned levels was followed up by strong buying. The daily candlestick depicts a doji pattern, suggesting indecison between buyers and sellers.(Open 61.40- Close -61.32). Hence. it would be crucial for the pair to sustain above either of the high/low of the prior day to initiate a directional trade or we could see some sideways movement. However, the bias for the pair continues to remain positve.The supports for the day are at 61.05 followed by 60.75. The resistances are at 61.55 followed by 61.75 Overall we could expect the pair to trade in a range of 61.10-61.75 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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