Dollar - on a new high!!

The NIFTY today gave the long standing target of 3650 and fell further to close at 3602. The Sensex has in the meantime broken below the crucial 12000 mark and has closed at 11800. While we may have some relief rallies, we should expect 10500-10000 levels in the next few weeks.

The USDINR too has picked up pace and is nearing 48/- . Currently it is quotaing at 47.85 and seems to be targeting its all time high at 49.08. Nowadays a Rs 1/- movement in the dollar seems quite normal and volatility has increased dramatically.



On the charts though we see a negative divergence, you would also clearly observe that the divergence is not getting 'confirmed' as the swing break out has not occured. This suggests the possibility of a further rise beyond Rs 48/-.

Any long positions will now have a stoploss of Rs 46/-

I presume it is the right time to open the currency futures trading account with the broker!!

Happy Trading

CA Rajiv D Khatlawala