Sep 012010

As mentioned in my August 27th post, the Indian Rupee has hit the upper borders of the trendline and looking at today's SGX Nifty at pre-open and early currency market moves, it may be moving along expected path. This is shown in the chart below:

USDINR Daily Chart

So if USDINR charts this path, the stock markets should take an inverse path - that either stalls under highs of August or makes a high slightly above 5600 and pulls lower sharply when INR breaks out of the symmetrical triangle. The chart below shows this scenario on Nifty.

Nifty Daily Charts

  3 Responses to “Focus shifts to INR”

  1. A similar study on currency, on the CHFINR by you was also a superb barometer in your earlier studies. You are one of the few guys who tracks the currency moves along. This time again I observe outflows of the INR to CHF… Another pointer to your bearish view

  2. absolutely agree……currencies are showing very scary movement…..

  3. Spot on Sanjay. It did cool a bit in July, but once again it has started to strengthen. From 39.5 in late Apr- early May to 46.2 now must certainly mean something.

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