A serious observer might be fooled by calls for buying dips that take the index to loer levels, but the Sensex and the Nifty participants are yet unlikely to give in to that urge as the Euro breaks down to its truer support globally. Now that rupee is over depreciated, one is hoping sense will prevail and Dollar will go bakck to a saner Rupee level before enjoining the Euro afflicted Dollar Index hich is more a bubble given the currency’s flaiing currently
Trading strategies are mostly long and require a little staying power. Some defensive PSE infra plays like L&T and BHEL for example will get strength and then it would be difficult to stop Bank Nifty and Nifty on the up with Axis Bank ready for its move
The Rupee will move to 53 levels. The big news yesterday on the Central Banks cutting rates and BOE pushing in another GBP 50 B in stimulus means global OECD equities do have a reason to keep their chin up as Wall Street showed after the first half hour of trading. The rally in equities will thus be moderate but longlasting esp with the Indian Government and MSA in particular stating the fact of Rupee being over-depreciated.