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After ending yesterday’s session with a marginal loss at 73.34, the rupee (INR) has begun today’s session on a flat note. This means the domestic currency remains below the support of 73.3. If it depreciates today, the exchange rate is likely to move to 73.5 with subsequent support at 73.7. On the other hand, if INR strengthens from here and rallies past 73.3, it can appreciate to 73.15. Above this level lies the critical resistance of 73.
Foreign Portfolio Investors (FPI) remained net buyer on Tuesday as well. The net investments stood at about ₹832 crore (equity and debt combined) and thus the net inflow for the week is now at nearly ₹1,450 crore. This helped the rupee stay afloat against the dollar.
Dollar index
The dollar index bounced off the support of 93 and closed at 93.55 on Tuesday, gaining half a per cent. Currently trading at 93.6, it is testing the 21-day moving average. If the index manages to cross over this level, it can gain further, possibly advancing to 94. Notably, 94 is a crucial resistance and it is a key level with respect to the short and medium-term trend.
Daily Rupee call: Short INR if it slips below 73.4
Trade strategy
Though the rupee has opened flat, it stays below the support level of 73. Also, the dollar index is showing signs in favour of the greenback. So, for intraday, traders can short rupee with a stop-loss at 73.2
Supports: 73.5 and 73.7
Resistances: 73.3 and 73.15
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