The Rupee has been on a downward spiral since the past few trading sessions. Alex Mathews, Research Head, Geojit BNP Paribas Financial Services suggests that the INR is still looking weak on the technical charts.

Smartinvestor : Markets have rallied 3% today after a very volatile week. Where do you see the markets heading?

Alex Mathews : It is too early to say if the worst is over for the market. Currently we are seeing a relief rally as the markets in the Euro-zone have also rebounded.

Alex Mathews : Investors have created long positions in the frontline stocks ahead of the quarterly numbers; that is the reason ICICI Bank, RIL and Infosys are up. Nifty touched a high of 5,034 during September end and corrected thereafter, touching a low of 4,728 this week. Markets were oversold after the correction; hence we are seeing a rebound.

Alex Mathews : Nifty may scale of 5,065 which is the 50 Day Moving Average around Diwali.

Smartinvestor : Rupee has strengthened to 49.02 per dollar as Euro-zone worries ease, where do you see the rupee heading?

Alex Mathews : European crisis is not over, although the European Central Bank is providing further support to the banks, there can be some more downgrades in Euro-zone during the coming weeks. The rupee continues to look weak on the technical charts. The dollar index may break the previous high of 81.44, recorded in December 2010, which will put further pressure on the euro and the rupee.



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