Bonjour, new guests from small-town India
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
BL Research Bureau
The rupee (INR) appreciated last session against the dollar (USD) and closed at 73.04 versus preceding day’s close of 73.15. Following this, it opened at 73.08 today and is currently hovering at an important level of 73.
A breakout of this level can invite more buyers, and INR can rise to 72.75 – a resistance level. Above this level, 72.5 can act as a hurdle. But if rupee declines from here, it the nearest support is at 73.15 with 73.25 as the subsequent support.
The foreign portfolio investors (FPI) made net investments of ₹1,076 crore (equity and debt combined) on Thursday. Thus, they continue to bring money into the domestic market, which is supportive for the rupee. So far in the current week, the net inflows by FPIs stand at nearly ₹6,700 crore.
Dollar index
The dollar index closed the last session marginally lower at 90.24 as against Wednesday’s close of 90.36. Nevertheless, the daily chart shows that it has been oscillating within 90.00 and 90.60 for the past few trading sessions. So, even though the major trend is bearish until either 90.00 or 90.60 is breached, the next leg will remain uncertain.
Trade strategy
The rupee, after opening at 73.08, is currently trading near the crucial level of 73. Though INR has been bullish, the resistance at 73 is strong, and the bulls might find it difficult to crack this level.
Considering that the current level is a resistance, and the nearest support is at 73.15, the risk-reward is favourable for rupee short positions. Hence, traders can short INR with a tight stop-loss for intraday.
Supports: 73.15 and 73.25
Resistances: 73.00 and 72.75
Please Email the Editor