Is INR rally over? That's what FIIs think. As of writing the post - USDINR was trading at 59.08. Reason: Indian Central Bank is using the recent rally to boost its foreign reserves by buying dollars, and rightly so.
Here's the USDINR Weekly Chart
As you can see in the chart above: USDINR broke down below 61 pre election in March 2014 and declined to 58/100 week moving average just a week after election results. Now, it's bouncing back again with 61 as major resistance. As of now, it seems USDINR making an attempt to settle between 58 and 61.
As per FIIs: HSBC forecasts a drop to 62 by Dec. 31, while Goldman Sachs sees the rupee at 61 in six months. Well, it's not very different to what we can see on charts.
This post is purely for educational purpose only.