Currency

#3 Currency Update: Time to Sell USD

Rupee depreciation has been the talk of the town for last few months which has been beneficial for companies and individual having reach in foreign countries. Sectors like IT and Pharma are expected to show earnings above street estimation this quarter. On last 30th October it was our #1 Currency target and we gave minimum target of 62.80 against closing of around 52 that month and it was achieved with in a year. Now looking at charts of other markets we are of a view that Rupee should get stronger and fortunately we have seen perfect confirmation technically on USD/INR monthly chart. For the basic technical analyst as you all could notice a Dark Cloud cover pattern though not the perfect one but its valid. Indicators have turned out from overbought zone. Combining it with other technical theory we are expecting our Rupee to appreciate against dollar in next 1-2 years.

Our strategy: We recommend to Short USD/INR near to CMP of 61 tgts 60.40/57.60/54.70/53 and MAX it go down to 50 in next 1-2 years with SL of 65 (Monthly Close)

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