Hi,Dollar/Rupee opened up tracking strong Dollar index amid concerns over likely tapering stimulus measures by Federal reserve next month and as India's industrial output contracted for a second straight month in June.Also, Investor are watching keenly the US retail sales data to be announced later today which is expected to rise to four month high raising fear that the Fed may taper stimulus sooner than expected.Technically, once USDINR crosses the level of 61.80, it is expected to touch the level of 65 soon.IIP contracted 2.2% in June compared to 1.59% a month earlier heightening concerns of a slowdown offsetting the measures unveiled by the Finance minister to attract more overseas inflows.
Bank Nifty is expected to touch the level of 8300 on rate hike fear as INR declined.Investors are expecting CRR cut or more REPO rate cut by 50bps in the next monetary policy meet.
Dollar/Yen rose to 97.25 level on higher risk appetite after the Japanese Prime Minister decided to lower corporate tax in order to attract foreign investments and reduce the burden on Japanese companies.Japanese Yen against Rupee is expected to touch the level of 70 from the current level of 63 on the expectation of slowing down of aggressive bond purchase plan on concern over accumulation of global financial imbalances through increased investment in emerging economies by firms using cheap funds raised in the Japanese market.Gold shot up sharply after traders and consumers rushed to book the gold on speculation of import duty hike by 2%.Gold also received a boost after weak US data and rise in ETF holdings.Investors in precious metals can Buy gold @ around 28700 with the target1 @ 32000 and tgt2 @ 35000 and Buy Silver @ around 45000 tgt1 51000 tgt2 70000 within one year.Comex Gold is expected to touch the level of $1700 and Comex Silver @ $26 and if sustained above $27 then $35 within the period of one year.
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