MY: Indian Rupee may remain weak; sell on pullbacks: Karvy
arvy Stock Broking has come out with its fundamental review on currencies. According to the research firm, the rupee/dollar pair is expected to remain weak. One can sell on the pull backs.
Over the last week, the rupee/dollar pair opened at 54.81, declining thereafter to 54.29, the lowest in the middle of the week, finally settling at 54.51 with a loss of 0.54%. On the weekly charts, the pair settled near the support of the major EMA’s (8, 21) while the RSI-14 momentum indicator declined from 0.54-0.52 on a weekly basis. However, the major factor present on the chart is that the pair is still moving within the triangle pattern, making higher lows and lower lows. Coming to this week, the moving averages could be taken as minor support levels and, a breach of this would confirm further weakness till the next supports of the triangle pattern are reached i.e., around 53.80-53.70. So, by these observations, we expect the rupee/dollar pair to remain weak. We recommend selling on the pull backs.
