Rupee may trade in 62.25-62.80 range; sell on rise: Karvy
Karvy Stock Broking has come out with its report on currency. According to the research firm, the USDINR pair is expected to trade in the range of 62.25-62.80 for the day. One can sell on sell on rise, says Karvy.
September 27, 2013 / 11:47 IST
Karvy's research report on currency -
In today's session, we expect the rupee to further extend its gains against the dollar, owing to the persistent steps taken by the RBI. The Reserve Bank of India is planning to use the consumer price inflation in place of wholesales price inflation and take steps targeting consumer price gains. The 1- month dollar-rupee NDF offshore contract is trading on a stronger note at 62.50, which may further support the rupee. At the global front, Asian equities are trading up, supported by an improvement in Chinese industrial profits. As the day progresses, Europe will releases its confidence data, which is expected to improve and should limit the losses in the euro and pressurize the dollar against the rupee. However, the Dollar index may extend its gains against the majors during the day on anticipation of improving US personal consumption and spending. Overall, we expect the rupee to trade on a stronger note for the day.USD/INR-OCT-MCX-SX-NSE-
As expected in our previous day's report , the dollar-rupee pair traded and closed lower at 62.56, shedding 0.47 percent or 0.75 paisa. Earlier, the pair opened gap-down and, after reaching a high of 62.92 fell sharply to reach a low of 62.50. The up-sloping trendline breach continues to bode well for the sellers. Going by the Fibonacci retracement, the pair has reached its 61.8 percent retracement level (62.54) of the swing range (61.90-3.58).Sustained trade below the same could augur further weakness in the pair. The relative strength index has continued to weaken further on sustained trade below the 50 level and has been in gear with the price fall. For the day, the supports are at 62.40 followed by 62.24 .The resistances are at 62.82 followed by 63.08.Overall, we expect the pair to trade in the range of 62.25-62.80 for the day and recommend selling on rises.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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