USD Index can be consider one of the benchamark for measuring FII Inflows. In shorter words declining USD Index will attract FII inflows and raising USD index will attract FII’s outflows.
USD Index started its downward journey from March 9 onwards since then NSE is being crowded by FII’s . And after witnessing a Bullish hammer in the daily USD Index chart with negative divergence formation at oversold RSI-2 levels(Daily and Weekly) indicates the possibility of trend reversal in short term. Which in turn indicates lower crude,gold prices in short term + FII’s turning net sellers in equity markets.
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Sir, I am still holding Nifty short position. Should i hold tomorrow ?Rgds,Swati
Hi Swathi Cover Nifty and Short only if Nifty closes below 4476