Rupee is taking strength from its seven-week low as the gains in share market and the dollar`s weakness against major currencies are boosting the sentiments by increasing risk appetite.

It is expected that the dollar`s movement overseas against other majors will drive the direction of the rupee over the week ahead, said SMC Global. Today rupee seems to be stronger than yesterday with the positive opening of Indian indices but weighed by the past impact the day ahead, it added.

With a hanging man candlestick formation, the trade is expected to be pro-INR. Also, supporting the outlook is stochastic indicator which is overbought. Rupee faces major resistance at 47 which has been tested thrice. However, the support is expected around Feb. 5 low of 46.54, closely followed by 46.53 which has been a tested resistance in the recent past. A further drop might activate 46.26 levels which is also the intersection with Bollinger band, SMC added.

It recommends to `Buy` USDINR (Feb.) at 46.50 for the target of 47 with the stop loss of 46.

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