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BL Research Bureau
The rupee (INR) has opened with a gain today against the dollar (USD), at 74.48 versus its previous close of 75.15. The local currency has gained above the important level of 75, but 74.5 can act as a hurdle. Above that level, 74.35 is a potential resistance. On the downside, 75.3 is the support below 75.
Yesterday, the rupee gained about 1.25 per cent, closing the session at 75.15 versus its previous close of 76.1 against the greenback. For the calendar year, the rupee has dropped by 4.6 per cent. Though the Foreign Portfolio Investments (FPI) were net sellers yesterday, the amount of selling has been declining in the past few trading sessions. The net outflow of FPIs on Thursday was nearly ₹485 crore.
Dollar index:
The dollar index declined sharply lower yesterday and slipped below the critical level of 100. The nearest support can be spotted between the price band 98.6 and 98.8, which is coincided by both 21- and 50-day moving averages. A break below that level can result in further weakening, which could be favourable for the Indian currency.
Trade strategy:
The rupee seems to be on positive momentum and today, it has rallied above the resistance at 75. The domestic unit can thus be expected to advance for intraday. Since 74.5 is a considerable resistance, traders could go long in the rupee with stop-loss at 75 if it rallies above 74.5.
Supports: 75 and 75.3
Resistances: 74.35 and 74
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