Nowadays Rupee movement is the most takable topic than sensex these days. When looking in to the technicals still the long term buy signal in rupee is not yet over and keep continuing. Just see the charts presented here. The first Buy signal comes in the rupee when the rupee breaches 200 day MA also moves above 20 day EMA near Rs42. Normally if a stock/index/currency if breaks 200 day MA in upside suggest a long term rally and a fallout below 200 day MA suggests bear hugs to the corresponding stock/index/currency.
At this point of time Still the rupee is trading above Rs 48 (>20 EMA) which is still a buy signal yet. Only a breakdown below Rs 48 will target 43(200 MA) in short tem. So May be in the upcoming days FII’s deleveraging will continue…. the recent surge in rupee agains USD says so….despite RBI’s rate cut. So still the message is clear. Dont go into street to buy stocks…. Stay away from it untill a clear cut signal in rupee arrives…
