After the long time the Indian IPO season has begun. Bharti Infratel, the telecommunications tower unit of top Indian phone carrier Bharti Airtel Ltd is set to raise up to $825 million in what would be India’s biggest initial share offering in two years. This is likely to be followed by a stake sale by the government in NMDC Ltd The government expects to raise roughly $1.2 billion by selling a stake in the state-run miner. IPO’s will result in much needed foreign flows into India and should result in gains for the rupee. Gains in key Asian currencies against the US dollar will also result in gains for the Indian rupee.

The Federal Reserve meeting will be the key for the Indian rupee as well. If the rupee weakens after the FOMC meet this week then there has to be a reason to worry as the chances of a new all time high will be more. Global economic numbers from USA and China should result in gains for the currency. On the domestic front the focus shifts to Gujarat elections as the key FDI in multi brand retail has been passed by the parliament which will prevent big weakness for the rupee.  Intra  day volatility will be high. 

 

TECHNICAL VIEW

US-DOLLAR – INDIAN RUPEE (USD/INR) DECEMBER – (CURRENT PRICE 54.6875)

Bullish over 54.6225 with 54.9650 and 55.3250 as price target
Bearish below 54.4175 with 54.1550 and 53.7375 as price target
Neutral Zone: 54.4175-54.6225

BREAK POINT: - 54.6975

  • Rupee needs to trade over 54.6900 to target 54.96-55.15
  • There will be sellers only below 54.69 to 54.42-54.15

 

EURO-INDIA RUPEE (EUR/INR) DECEMBER – (CURRENT PRICE 70.5900)

Bullish over 70.2725 with 70.9550 and 71.2950 as price target
Bearish below 70.0150 with 69.8250-69.6650 as price target
Neutral Zone: 70.0150-70.2750

BREAK POINT: 70.7125

  • Euro/inr needs to trade over 70.27 to target 71.00-72.37
  • Only a daily close below 70.27 for three consecutive days will result in a bearish trend.

 

UK POUND -INDIA RUPEE (GBP/INR) DECEMBER – (CURRENT PRICE 87.7150)

Bullish over 87.90 with 88.0850 and 88.8850 as price target
Bearish below 87.7125 with 87.4750 and 87.0350 as price target
Neutral Zone: 87.7125-87.9000

BREAK POINT: 87.9000

  • Cable needs to trade over 87.90 to target 88.4850-88.8825
  • Only a daily close below 87.3250 for three consecutive days will result in a short term bearish trend.

 

JAPANESE YEN -INDIA RUPEE (JPY/INR) DECEMBER – (CURRENT PRICE 66.5275)

Bullish over 66.4500 with 66.7150 and 67.0950 as price target
Bearish below 66.0775 with 65.6775 and 65.3050 as price target
Neutral Zone: 66.0775-66.4500

BREAK POINT: - 66.4500

  • Yen/inr  needs to trade over 66.45 to target 67.0950
  • Another wave of selling will be there below 66.20 only.