Nifty is seen to be trading in an extremely tight range for now, around 30 points from Friday close. The indice is at 8588/90 spot levels at this moment and still remains vulnerable for another round of sell off towards 8400/50 spot levels soon. Please remember, “The longer trend remains bullish… but an intermediary consolidation has begun already, that could drift prices lower towards sub 8000 levels in the weeks to come by.” Selling into strength remains a preferred trade strategy till then.
The USDINR had opened lower today as discussed in the morning report and is seen to be forming a base at the moment around the 62.20 spot levels. Strong fibonacci support is seen at 62.00/61.90 spot levels, and expectations are for a bullish turn around from current price action. Buying dips should be the favoured trading strategy for now.