A morning walk down Dalal Street | Rupee may continue to remain weak, can breach Rs 72-73/$

A smart recovery towards the close of the session but it failed to push the index above 11500 levels on the Nifty. The Sensex did reclaim 38,000 while the Nifty closed above 11,450 levels on closing basis.

Rupee also saw some recovery in the second half of the session. The currency closed off record low at 71.75/$; down 12 percent in 2018 so far. 

Rupee might have recovered but experts see the weakness to continue and the currency could well breach Rs 72-73/$ in the near term.

Last hour buying suggests that we could see a bounce back on Thursday if the global cues remains supportive; however, the bullish momentum will continue above 11,620 levels. 

On the technical front, Nifty formed a Hammer like pattern on daily charts which suggests there could be a bounce in Thursday’s session.

The effect will get negated if the Nifty forms a bearish candle. 

But, there is one more things which concerns us is that Supertrend indicator gave a sell call.

The last time when supertrend indicator gave a sell call was on 28th June, but the index reversed trend in just eight trading sessions 

It needs to cross and hold above 11,500 zones to witness an up move towards 11,550 then 11,620 zone.

On the downside support is seen at 11,420-11,400 zones.