On the options front, 73 strike has noteworthy OI in Call and Put strike that suggests it may consolidate at current levels, says ICICI Direct.
Indian rupee is trading lower at 72.91 per dollar, amid buying seen in the domestic equity market.
It opened marginally lower at 72.86 per dollar against Friday’s close of 72.83.
The Sensex is up 232.85 points or 0.46% at 50773.33, and the Nifty up 56.90 points or 0.37% at 15232.20.
“Overall the sentiments are quite risk-on amid economic revival and reopening of the Western countries. Also, in India the improving trend of moderation in daily new Covid cases is boosting risk sentiments,” said Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services.
“While, dollar index has continued the downtrend, despite Fed minutes spooked the market on the prospect of Fed tapering and there are less signs of DXY bouncing atleast in the short term. So fx traders will monitor the Covid situation and trend in dollar, and keep the spot within 72.50-73.50 with a negative bias,” he added.
Oil prices rose on Monday as a storm formed in the Gulf of Mexico and Iran said a three-month nuclear monitoring deal had expired, raising doubts about the future of indirect talks that could end US sanctions on Iranian crude exports.
The dollar stood near its lowest level in three months against a resurgent euro, struggling for traction as investors pared earlier bets the US Federal Reserve may soon be ready to taper its stimulus.
The positive sentiment in the domestic currency is influenced by a rally in domestic markets and falling oil prices. On the options front, 73 strike has noteworthy OI in Call and Put strike that suggests it may consolidate at current levels, said ICICI Direct.
The dollar-rupee May contract on the NSE was at Rs 72.86 in the last session. The open interest fell almost 6% for the May series, it added.