Fortune Financial Services has come out with its report on currency. The research firm says USDINR future contract on MCX are looking negative for intraday. Market may find support near 51.722 , 51.328 and 51.107. Intraday resistance can be seen near 52.337 , 52.558 and 52.952.
The rupee is likely to open higher against the US dollar due to continued capital inflows following recent decisions of the government on economic reforms to boost investor confidence. Market players also said improved risk appetite following release of favourable September US nonfarm payroll data post India market hours will support riskier currencies like the rupee. The data shows an improvement in the jobs market with the US unemployment rate reportedly dropping to a four-year low of 7.8%. Also, the US new job creation was 114,000 in September, higher than market expectation of 110,000 jobs. Market players, however, said, the improvement in unemployment rate may limit the scope of the US Federal Reserve's bond purchase program, which may hurt investors sentiments in the medium term. The euro rose against the dollar after the release of data. The euro was at $1.3042 against Thursday's close of $1.3016. If the euro continues its rally it could boost the rupee as well. However, dollar demand from importers may weigh on the local unit. Importers have been purchasing the greenback in the last couple of sessions to benefit from the lower dollar/rupee levels. The rupee is likely to be in the 51.5000- 52.0000 band on Monday. Technical outlook:
USDINR future contract on MCX are looking negative for intraday. Market may find support near 51.722 , 51.328 and 51.107 . Intraday resistance can be seen near 52.337 , 52.558 and 52.952. Short term trend is looking bearish Market may find major levels near 10 SMA of 53.0355 and 50 Days SMA of 55.341. 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. To read the full report click on the attachment
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