Buy USDINR November; target of 61.98: Karvy

Karvy has recommended to buy USDINR November near 61.62-61.63 with a stop loss of 61.49 for the target of 61.98, in its research report dated November 12, 2014.

November 12, 2014 / 12:23 IST

Karvy's report on rupee

Outlook: In today’s morning trade Asian equity markets are trading on a positive note after US markets managed to hold on to the gains from Monday. All the US indices closed marginally higher with the benchmark S&P index closing at 2039.68 up by 0.07 percent in yesterday’s trade. SGX nifty is trading on a marginally positive note at 8415.00 for the November contract and is expected to trade in positive territory today.

In terms of currency, Asian currencies are trading on a flat to mixed note in today’s session. US dollar index had a minor correction last night as the EURO and Yen have partially recovered from their respective lows. US dollar is currently trading at 87.59 and continues to look positive. On the local front, the NDF 1M Rupee is trading at 61.83 with a change of 6 paisa from yesterday’s close.

Major economic data for the day during our market hours would be from the UK economy which would release the jobless claims change. In the evening, Indian CPI and IIP numbers are due to be released and are expected to improve from the previous level. We can expect bouts of volatility in the later part of the day.

In a nutshell, we expect the USDINR pair to continue to trade in a tight range with a bias towards depreciation. We expect high volatility in the later part of today’s session.