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.
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.
Im on a short holiday to Lake district. Will be back with market updates on Thursday.