This particular bank is on a multi-year breakout. A daily close above current levels(514) will reiterate the breakout.
Disclosure: I do not hold any position in this stock but intend to load up once the stock closes above 514.
Is INR poised for a brisk move?
As can be seen from the weekly chart of INR, the currency has closed under the 200 period moving average after a period of consolidation. In Aug 2008, when INR went through a similar consolidation and closed above the 200 MA level, we saw a brisk 10% move (weakening of INR) in the next 2 months. Today, the picture is almost like an inverse mirror image (see circled region). Will the Rupee see a brisk move this time in the other direction (strengthening)?
Data and Chart courtesy: Bloomberg.
On Vacation
Im on a short holiday to Lake district. Will be back with market updates on Thursday.