Daily rupee call: Rupee expected to remain bullish

Akhil Nallamuthu | Updated on May 13, 2020 Published on May 13, 2020

The rupee (INR) commenced the session with a gain of about 0.3 per cent against the dollar (USD). It opened at 75.27 versus its previous close of 75.5. Notably, 75.3 can act as a resistance, which might cap the gain. Subsequent resistances are placed at 75.15. A decline from current levels can take the exchange rate to 75.6 and 75.8 – the support levels for the rupee.

Despite a weak opening yesterday, the Indian currency took support near 76 and began to advance intra-day. It recovered after registering an intra-day low of 75.88 and ended the session at 75.5, gaining 0.3 per cent against the greenback.

The rupee gained yesterday despite Foreign Portfolio Investors (FPI) being net sellers. The net outflow of the FPI stood at ₹1,662 crore (equity and debt combined). Though, on the other hand, the US dollar index declined marginally yesterday, it continues to trade around the 100-mark.

Fiscal stimulus

While the Consumer Price index (CPI) index based inflation for April was not released because of limited transactions, the Index of Industrial Production (IIP) has contracted by 16.7 per cent for March. The negative effect of this is likely to be overpowered by the announcement of a big bang fiscal stimulus of ₹20 lakh crore by the government.

Trade strategy

The rupee opened with a gain, extending its rally. It can retain a bullish bias while it remains above 75.5. But 75.3 can act as a hindrance. Hence, for intra-day, traders can buy rupee with a tight stop-loss, if it moves above 75.3.

Supports: 75.5 and 75.6

Resistances: 75.3 and 75.15

Published on May 13, 2020

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.