Technical Analysis

Daily rupee call: Initiate longs on decline

Akhil Nallamuthu BL Research Bureau | Updated on November 28, 2019 Published on November 28, 2019

The rupee extended its rally on Wednesday and breached a key resistance at 71.4 against the dollar. It closed the session at 71.35 against its previous close of 71.49. The Indian currency has broken two key resistances i.e. 71.4 and 71.6 in past two trading sessions, hinting a substantial upward momentum. The nearest resistance from current level is at 71.2, beyond which the resistances comes in at 71. On the downside, 71.4 can act as a good support. Until the rupee stays above the support at 71.6, it can be approached with bullish bias.

The rupee has appreciated despite the dollar index gaining marginally. This indicates a considerable demand for the domestic currency. The dollar index has inched above the resistance at 98.25 and is currently trading at 98.28. Further appreciation can take the index to 98.5.

In the off-shore market, the one-year Non-Deliverable Forward (NDF) points of the USDINR currency pair eased to 290 on Wednesday compared to 295.5 on Tuesday. The reduction in spread is positive for the rupee.

Today, the rupee has opened at 71.32 it has slightly dipped to71.36 currently. Since the recent trend is bullish and there is a considerable support at 71.4, the rupee can be approached with bullish bias today and traders can buy the rupee with 71.55 as stop-loss.

Supports: 71.4 and 71.6

Resistances: 71 and 71.2

Published on November 28, 2019
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