Intraday volatility will rise as markets reopen after a holiday. Once markets settle down, traders will now start to take positions for next week. Next week is Diwali and there are holidays as well. Import demand will fall from next week temporarily.
Unconfirmed suggest indicated that Reserve bank of India was buying US dollars on Tuesday. If this continues then rupee will weaken further and importers will be forced to cover their near term payables.
Usd/inr October 2014 (expiry on 29th October): A break of 61.86 will result in 62.02 and 62.36. Initial support is at 61.47 and there will be sellers only below 61.47.
Euro/inr October 2014 (expiry on 29th October): It can rise to 79.47 and 80.02 as long as it trades over 78.76. There will be sellers only below 78.76 today.
Gbp/Inr October 2014 (expiry on 29th October): It needs to trade over 98.47 to rise to 99.36 and 101.12. Initial support is at 98.47 and there will be sellers only below 98.47 only.
Jpy/Inr October 2014 (expiry on 29th October): It can rise to 58.36 and 59.12 as long as it trades over 57.76.
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