Buy rupee for intraday with stop-loss at 75

The rupee (INR) lost one per cent in yesterday’s session as it marked its lifetime low of 75.31 against the dollar (USD). But it recovered marginally towards the end of the day closing the session at 74.98; the previous close was at 74.23.

The rupee has opened higher today, at 74.78 versus yesterday’s close of 74.98 against the greenback. Thus, the local currency manages to remain above the critical level of 75. If the rupee slips below that level, the subsequent support is at 75.3; on the other hand, if it rises from here, it will face resistance at 74.5 and 74.35.

Foreign Portfolio Investors (FPI) continue to be net sellers as they sold in yesterday’s session too. According to the latest data by National Securities Depository Limited (NSDL), the net outflow for the month as on yesterday is at ₹85,313 crore (equity and debt combined). The rupee can be under significant pressure until the FPIs continue to dump assets.

Dollar index

The dollar index continued to rise and breached a strong resistance at 102 and closed at 103 versus its previous close of 101.16. Today, the index has moderated and is retesting 102. As long as it trades above the critical level of 100, the trend will be bullish for the index. The nearest resistance above 103 is 103.8 i.e. its lifetime high. The support below the current level of 102 is at 101.

Trade strategy

As the rupee remains above 75, it might be trading with a bullish bias today. Hence, traders can initiate fresh longs in rupee with stop-loss at 75.

Supports: 75 and 75.3

Resistances: 74.5 and 74.35