USDINR: Sell below 60.60 - Way2wealth

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WEEKLY TECHNICAL REPORT

I EQUITIES & CURRENCIES I

Nifty

BankNifty

8th Sep 14

The Banknifty too tested the resistance line of the rising channel and witnessed profit booking from those levels. The index has violated the short-term uptrend line in the convingcing manner this has increased the chances of test of support line pegged at 15600 levels. Daily RSI has generated the negative crossover supporting our view in the counter.

Action Entry Target Stop

Sell Below 15890 15600 16060

Note: The above levels are for BankNifty Spot.

Nifty in the past week opened with a positive gap and tested the resistance line of the rising channel and ended around the same. In Friday’s session prices violated the short-term uptrend line but closed above the same. If in this week the index slide below 8049 then slide till the next support level pegged at 7920 level is likely. Alternatively if the index penetrates the resistance line of the rising channel in convincing manner then sharp upside can be seen. Daily RSI has negated the negative diversion. Weekly MACD is balanced in the positive territory.


Buy Above 8160 8300 8080

Sell Below 8040 7920 8111

Note: The above levels are for Nifty Spot.

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RCOM Future

IOC Future

The stock future has completed the bullish head and shoulders chart pattern on the weekly. Prices penetrated the rising neckline resistance but failed to close above the same. If in the upcoming sessions prices surpass the previous week’s high then swift run up is likely. Conservative price target according to the chart pattern is at 460 levels. Weekly MACD has given the positive crossover in the positive territory which is a bullish sign.


Buy Above 400 460 369

The stock future tested the long term flat support line on the weekly chart and ended the day with the hammer candlestick pattern. Daily RSI is valued at 29 in the oversold zone. Above all technical observations are indicating some bounce from current levels.


Buy Above 113 124 107






IRB Future

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The stock future has provided the breakout from the symmetrical triangle chart pattern on the daily chart after a consolidation of 45 days. Height of the triangle is of 45 points and adding the same to the breakout point i.e. 260 provides us the price target of 305. Daily RSI is in line with the price structure.


Buy Around 265 305 249

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Action Entry Target Stop Loss USDINR Sell Below 60.60 60 60.90

JPYINR Buy Above 57.85 58.50 57.57

GBPINR Sell Around 100 98 101

USDINR (60.68) Yet again throughout the week USDINR remained sideways to

negative during most of the session. Despite selling pressure in other currency pairs USDINR managed to sustain above its crucial support of 60.53. This was mainly due to muscular rally in the dollar index. Now at this stage, it can be seen from the daily chart that the pair has a multiple supports between 60.65 – 60.53 levels. Hence a move above immediate resistance of 61 can strengthen the pair to test 61.40 to 61.60 levels in the

coming week. On the flipside, breach of 60.53 level might

prompt further selling towards 60.

JPYINR (57.71) The pair traded with negative bias throughout the week and even breached the support of 58.50. The fall was so sharp

that JPYINR lost almost 2% during this period and is trading below 58 mark. Now the daily and hourly chart of the pair seems a bit exhausted and thus a bounce from current levels cannot be ruled out. In such scenario, 57.82 and 58.50 are likely to remain strong resistance for the coming sessions. However, in case of further downside 57.50 – 56.80 could act as the

decent support for the pair.

GBPINR (98.95) Surprisingly, instead of crossing an upside trigger of 101.22 level, the pair collapsed during the week registering a fall of almost 2%. This was mainly because of outcome from ECB meet and concerns in the euro region. As a result the pair breached the support of 100 and is now trading near 99 mark. The breakdown on the daily and weekly chart indicates that

going forward the strategy should be ‘Sell on Rise’ for GBPINR. In case of further downside, the pair might drift towards 98 mark whereas in case of any bounce 100 & 101

levels will remain strong resistance for the coming weeks.

Currencies






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USDINR: Sell below 60.60 - Way2wealth

Economy & Finance

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