I am a bit bearish on Indian stock markets and expect a five percent correction in the next one month. The correction in Indian equity markets should come either before the Federal reserve meet on 30th April or before the election results on 16th May. However this time around sharp falls in Indian equity market will not in big weakness for the rupee as the RBI is better prepared to deal with such exigencies.
Usd/inr April 2014: It needs to fall below 60.3775 or break 60.6225 for direction. Overalll usd/inr will find sellers on rise as long as it does not break 60.80.
Euro/inr April 2014: Support is at 83.3450 with 83.98 as the key resistance. There will be another wave of selling only below 83.3450. Overall till April future close, we prefer a sell on rise strategy as long as euro/inr does not break 85.23.
Gbp/Inr April 2014: It needs to trade over 100.89 to prevent a fall to 10.66 and 100.12.
Jpy/Inr April 2014: It can fall to 58.96 and 58.69 as long as it trades below 59.27. There will be buyers only over 59.27 today.
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