The charts above are 200 minute charts of the USD-INR, then the Nifty, BankNifty, Gold, Silver, Copper and finally Crude.All charts are for a period between 28/10/11 and today.
These are also all the instruments we track in the trading room and send alerts for.The purpose of the charts are to show the effect of a falling INR on stocks and commodities.
It’s easy to see the effect of a falling INR on the Nifty and the bankNifty in the top 3 charts .INR has been the story of the past one month and we have made a special place for those charts in our trading room!
Ever since RBI intervened and seems to be selling dollars at the higher levels of 52.3 to 52.7, we seem to be having a floor on stocks and the greens at the end of the charts in Nifty and bank Nifty seem to suggest that.
Globally and even here, a rising dollar seem to be having the least effect on Crude ( last chart) and it is the best performing chart of the commodity space at the moment.
Gold also ignored most of the rise in the dollar and Silver had one large down day attributed to the margin hikes in China.
The INR is still at 52.2 levels currently the previous lows from 2008 and till this goes down to maybe 50 in the next one to two weeks, upsides in stocks will remain capped.
