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BL Research Bureau
The rupee (INR) witnessed a volatile session yesterday versus the dollar (USD). However, it ended the day on a flat note and remained above the support level of 74.35; notably, the local currency can trade with positive bias until it stays above the crucial level of 74.5. Today, INR can appreciate on the back of the support in the vicinity and move to 74.1. Above that level, it can face a strong hurdle at 74.
There was a considerable amount of Foreign Portfolio Investors (FPI) buying on Tuesday. The net inflow was recorded at ₹1,481 crore (equity and debt combined). Foreign fund flow remains steady and it can put an upward pressure on the rupee.
Dollar index
Dollar index was sluggish yesterday and it continues to trade around the 21-day moving average; it has been trading in a narrow range for the past couple of trading sessions. The index should breach the key barrier at 94 for the bulls to gain control. Until then, the overall bear trend will weigh on the index and as a result it may resume its downtrend anytime.
Trade strategy
The rupee, which opened on a flattish note today, continues to trade above 74.35 – a support level. Below that level is the important support of 74.5. Currently hovering around 74.3, the domestic unit is trading with a positive sentiment. So, traders can buy INR in intraday declines with stop-loss at 74.5
Supports: 74.35 and 74.5
Resistances: 74.1 and 74
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