Revisiting Dollar Rupee . . .

What a sell off !!! The Nifty and Sensex tanked again by about 5%. Throughout the day there was sustained selling pressure and it looked likely that corrective rally may not be sustained.I had indicated crucial support at 3965 and the Nifty opened at that level and continued to move downward.

Through out the day , I was constantly watching the movement of the Nifty vis a vis the Dollar Rupee and they were clearly moving in opposite direction. The Dollar rupee opened the day at 43.08 and steadily increased to 43.29 ; as the Nifty / Sensex continued to fall during the same intraday period.



Sometime back I had analyzed the Dollar Rupee and indicated higher level on break out above Rs 43/-. The Dollar rupee seems set to touch 43.70-43.75 level in the near future (which may again not be a good sign for the stock markets).

However I expect strong resistance / selling in Dollar rupee at 44/- which is it's 61.80% retracement level as well as previous few quarters support level.

Incidentally my first target of GOLD (on MCX ) of Rs 13500/- has been surpassed and it is currently quoted at 13650+ (partially helped by a rising dollar-rupee)

I think we should watch our currency closely for more signals !!

CA Rajiv D Khatlawala