Topic : Correlation of Market 💵💰
- Yesterday, Rupee depreciated against dollar by 35 paise and Market Corrected by 1.75% approx in 2 days.
- Banking always react more than Nifty does.
- Today we can see Ruppe has recovered by 14-15 paisa against dollar, hence we are expecting recovery in Bank Nifty anytime soon
- Tomorrow is a holiday, if Nifty closes above 15620 levels today, kindly avoid carrying forward short position in Market or hedge it.
What does it mean?
- Market is generally negatively correlated with Dollar Rupee.
- Overall structure of Dollar Rupee is positive, it means dollar is appreciating from last 1 month. Hence our markets are in consolidation and Bank Nifty is struggling to make new highs as against Nifty which was supported by Metals and IT.
What can we do?
- We should wait for today's market closing. Any decisive closing below 15600 is most likely, then we can initiate further short trades.
- Otherwise, it will cover within 2-3 days to fill the Gap down created on 19th July 2021