Nifty and USDINR Correlation , Vascon Engineer [Cup n Handle]

Some good moves seen in current expiry where in Nifty is trying to recover after a good fall and INR also showing some respite against Dollar. In India, the currency comparison is generally done along with Nifty movement. Lets discuss today how these two things are related.

Nifty Vs USDINR:

The above chart is comparison of Nifty and USDINR charts. From the charts, it can be clearly seen that both are complementing each other. Whenever, USDINR makes an intermediate high the Nifty makes intermediate low and it does not matter what is long term trend of both. 

The left part of comparison is when Nifty was in up-trend while Right side of comparison is when Nifty is in down-trend. 

At current point of time, a simultaneous spike seen in both in short term. What will happen , it will be interesting to see :-).

Now lets see how individual charts are shaping to understand some new learnings :

NIFTY:

  Nifty is ideally trading in big down trend channel from sub 9100 levels. In last few months, great recovery is seen in Nifty and it formed a small uptrend channel. Today Nifty managed to close above this channel. Untill this channel is not broken Nifty is heading for sub 8150-8200 levels. 

USDINR:

Dollar did a rounding bottom recovery from 64.5 levels and just gave a breakout above inverse Head and shoulder pattern. 66.93-95 level is next resistance level. Above this a clean move might come ;-).

In Summary, both are giving bullish signals but as per comparison one may give a fake signal ;-).

Vascon Engineer:

New Cup and handle in making. Charts say it all :

  Previous Recommendations are going great. Keep booking if one has short term view. Our Defensive picks are running good (Refer Defensive Picks)

NOTE: Above charts are only shared for learning purpose. These are not some BUY/SELL tips. Do your own research while investing.

Crompton Greaves and Market Updates

Nifty:

Nifty at Important junction. Nifty closed just below trendline resistance. Any close above this resistance, Nifty is ready for 8200+ zone otherwise 7400 levels are waiting for Nifty. Next week will be crucial for Nifty.


Crompton Greaves:

Crompton is trading in range from last year. Any close above 190 will be good opportunity for quick move. Keep Close eye.


The coming weak also bringing expiry due to which market will be volatile but weekly close will be important as Nifty and USDINR are at important junctions.

Mercator also gave Breakout this week.Follow up move might be seen soon. :)

NOTE: Above charts are only shared for learning purpose. These are not related to any BUY/SELL tips.

Market Updates and Few more interesting charts [Zee News, Dcb, Radico ]

Wishing all the blog viewers a very Happy Diwali. May this year bring more happiness and prosperity to the lives of each and every one.

Nifty:

Nifty broke the uptrend channel and now 7825-7850 area is resistance for further upmove. We might see some more fall may be 100 more points in nifty before some pullback. Moreover, RSI is approaching 25 area so may be some pullback may be seen soon but have to watch closely if it stays or not.

USDINR:

USDINR gave good trending move from 65 to 66.5 in short span of time. Its consolidating now. Fresh move above 66.5 for 67+ in short term. Watch out.  FSL started giving move as mentioned in previous post IT Pack - Dollar and IT Companies

ZEE NEWS:

  Currently in channel. Any breakout above this channel can give quick move till 38 levels. Keep close eye.

DCB:

DCB is near important support zone. It may give some pullback. Daily RSI is also showing some divergence. 

Radico khaitan:

Good Breakout seen on weekly charts breaking current channel resistance. Some quick might be seen if breakout sustains.

NOTE: Above charts are shared for learning purpose only. Do not treat these tips as BUY/SELL Tips.

Nifty , Bank Nifty and USDINR post Bihar Verdict

Has the Modi Magic failed or something else. BJP is not able to leave good mark in Bihar elections. Don't know how market will welcome this result.

Lets focus on the charts to get the clues for next movement:

NIFTY:

Nifty is still trading in the channel which was started 4 months back. Nifty is still in ping pong mode as 8350-8480 levels were not taken out. This week close was just at support. Any close below this Nifty is headed towards again to the bottom of the trend. Anyways, Nifty has clusters of support in range 7380-7650. Nifty is expected to be very volatile before start of new trend.

Nifty will not resume bull rally which started 1.5 years back untill the current trend line is taken out.

Bank Nifty:

Bank Nifty is also moving in similar trend line. We have to wait for some divergences before taking any bounceback trade. 

USDINR:

The breakout finally happened on dollar chart. This breakout happened on thrusday itself and it gave clear indication that some major impulse wave is coming soon next week. Although Nifty chart closed at support confusing the election outcome due to mixed exit polls but this was the chart suggesting some negatives are around the corner.

The dollar charts are already explained time to time in this blog. From charts, it seems we are heading towards 67+ in near future with some small halts at 66.46 and 66.92 being previous high points.

NOTE: Above charts are only shared for learning purpose and these are not some BUY/SELL tips.

IT Pack - Dollar and IT Companies

Nifty and Bank did some reversals from the levels posted in last post. 7980-8020 did the trick on Monday but it seems momentum missing in market. As far as Nifty stays above 8040-8060 or above its positive otherwise another round of selling can be witnessed.

Today we will discuss charts of Dollar along few IT names :

USDINR:

Dollar is at important junction now. Staying above 65.25 it managed to reach upper trend line. Any close above this trend line , the upper mentioned levels can be seen in quick time. Above 66.44 it will make higher high which will first signal of trend change. Keep close eye.

TCS:

  TCS is consolodating in range from last one year. Soon its going to test the breakout it did 2 years back. The momentum can be soon seen in this counter. Either back in trend-line or to new high.

WIPRO:

  Wipro also gave breakout in 2013 and from last 4-5 months consolodating and range contracting. Any move below 520 odd level back to previous supports other wise new high.

INFOSYS:

Infosys is trading channel from last 6 years. Made low in 2013 and its running good after that. Breaking the trend line will open new trajectory in this stock. Keep Close eye.

TECH MAHINDRA:

Similar lines, started rallying in 2013 and recently retested breakout.


FirstSource Solutions:

 Similar patterns seen in some midcaps as well. FSL gave rally from 12 to 44 and its again standing near resistance. Any cross some good move expected.

All the stocks initiated good trend in 2013, one of the reason at that time was that Dollar gave huge breakout and rallied from 53 to 68. So if dollar again gave good breakout then we might see similar moves again.

Below are the long term charts of Dollar which suggest such move is possible again:

Dollar is currently at the bottom of trend line and any move beyond previous high will conform new trend.

NOTE: Above charts are shared from Learning purpose and these are not related to any BUY/SELL Tips.

Bank Nifty, Nifty and Mercator Lines

Bank Nifty:

Bank Nifty is trading near support of hourly trend line. If sustains 17000 levels then it can again retest high otherwise a serious correction is waiting.

Nifty:

    Nifty is also trading close to support zones. 7980-8020 being support zones on hourly. Breaking this zone Nifty can retest previous lows again.


Last week we warned traders to be cautious as Nifty was forming a bearish wedge and Dollar was ready to give breakout. Dollar did close well above 65.25 levels. It will be interesting to see how it pans out in future.


Mercator Lines:

  This stock has been making multiple tops in 24.5-25.5 range in last three months. Moreover, the range is compressing and it seems some big move can be seen in this counter. Keep eye on this.


Note: Above Charts are shared for education purpose only and these are not some BUY/SELL tips. Do your own research before investing.