On June 18th I had posted "Dollar Rupee and Sensex" and mentioned that "A BREAKOUT OF RS 43 in DOLLAR RUPEE MAY NOT BE GOOD SIGN FOR THE STOCK MARKETS"
Well, The break out has come today . The Dollar against the Rupee has touched a high of 43.13 and is currently quoting at 43.05.
While this may be negative news for the Sensex , it may well be a positive for the Technology stocks ( Have you noticed that technology stocks are actualy rising in this falling market?)
A few days back I had mentioned that you can buy Infosys near 1675-1700 levels .I think the chance was already given to you by the market.
Another stock which seems to be completing it's correction is Satyam Computers.
The chart suggests that the stock is nearing it's crucial 61.80% retracement and it touched a low of 431 today. You would have noted that the volumes during the correction is low compared to the volumes during the rise - which is the typical price - volume relation.
Expect a break out of Rs 455 to give you medium term targets (3-4 weeks) of 510-525. On break out , consider Rs 420 as the crucial support level for the whole structure.
Happy trading !
CA Rajiv D Khatlawala
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