Technical Analysis

Daily Rupee call: INR likely to inch up

Akhil Nallamuthu | Updated on April 09, 2020 Published on April 09, 2020

BL Research Bureau

After posting a loss of nearly one per cent on Wednesday, the rupee (INR) has opened with a gain today, at 76.09 versus yesterday’s close of 76.34 against the dollar (USD). The daily chart shows that the domestic currency has been oscillating between 75.7 and 76.3 for the past few trading sessions.

As 76.3 is considerable support, the rupee might gain today on the back of it. On the upside, the resistance levels are 76 and 75.7; on the other hand, if the rupee breaches 76.3, it might decline to 76.5.

The Foreign Portfolio Investments (FPI) were net buyers on Wednesday, pumping in ₹1,943 crore (equity and debt combined). If this trend continues, the local currency will be able to form a strong base.

Dollar index:

The dollar index traded flat yesterday. Hovering around the important level of 100, the index stays above the 21-day moving average. As long as it remains above 100, the index can be bullish. But a break below 100 can drag it to 99 – 50-day moving average.

Trade strategy:

Since the rupee is trading near important support of 76.3 and it has been oscillating between 75.7 and 76.3 for the past few trading sessions, the local currency is likely to go up today. So, traders can buy rupee on declines for intraday with stop-loss at 76.5

Supports: 76.3 and 76.5

Resistances: 76 and 75.7

Published on April 09, 2020

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