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BL Research Bureau
The rupee (INR) has opened flat today at 73.36 against the dollar (USD). Thus, the local currency stays below the resistance of 73.3. If INR depreciates from the current level, the nearest support is at 73.5. A breach of this support can take the exchange rate to 73.7. On the other hand, if the rupee strengthens it can face hurdle at 73.15 and 73. A break below 73.5 can turn the trend bearish.
The market was positive yesterday and the Foreign Portfolio Investors (FPI) were buyers yesterday. The net inflow on Monday stood at ₹1,656 crore (equity and debt combined). This positive flow provided cushion for INR and if this trend continues, the rupee can gain against the dollar.
Dollar index
The dollar index posted a loss yesterday and has closed in the red for two consecutive sessions. It is currently trading near the 50-day moving average at 93.4. Further depreciation can drag the index to 93. Below that level, it can depreciate towards the support at 92.8. Notably, the trend can be bearish until it remains below the crucial level of 94.
Trade strategy
The rupee, after opening flat, stays below the support of 73.3. But as long as INR stays above the support of 73.5, the likelihood of bulls regaining traction is high. Hence, traders can buy INR in dips with stop-loss at 73.5.
Supports: 73.5 and 73.7
Resistances: 73.3 and 73.15
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