Technically Rupee should Gain further against the Major Currencies

Technically Rupee should Gain further against the Major Currencies

Indian economic growth may get "little worse" in the coming months due to high interest rates, inflation and recession in several key European economies, a survey by Assocham. It said that the overall GDP growth for the current financial year would be between 5 and 5.5 per cent. The net remittances by NRIs received in India in 2011-12 fiscal stood at $63,469 million. The net remittances received in India in 2010-11 and 2009-10 stood at $53,124 million and $51,791 million respectively. All the bad news on the economy has been factored in by the markets. Traders are still in a bearish bias for the rupee. The rupee weakness in October and November has created a caution among traders for going too short on the rupee. Rupee will gain temporarily once the Indian parliament passes the laws to attract more foreign investment in India.

We prefer a sell on rise strategy as long as usd/inr does not break 55.25 and euro/inr does not break 72.25. Jpy/Inr will have a technical break down below 65.50.



Bullish over 54.9650 with 55.3325 and 55.5875 as price target
Bearish below 54.7325 with 54.4275 and 53.8400 as price target
Neutral Zone: 54.7325-53.9650

BREAK POINT: - 54.4275

    Key support is at 54.7350 and there will be a technical break down below 54.7350 to 54.4225
    Long term support is at 54.4225 and a daily close below 54.4225 for three consecutive days will result in 53.8250-52.9375
    There will be sellers below 54.7325 only

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