Wednesday, November 16, 2016
After a long time. USD INR broke out of its trading range. This means wave 4 has ended and wave 5 has begun.
When wave 5 ends, it will also end the larger wave 3. So we could expect a prolonged correction in the form of larger wave 4.
Here are the long tern counts....
That Fourth wave after 72, could bring in the benefits of demonetization.
This does not mean that Nifty would decrease.
One worry is that FII money would leave us, if Rupee depreciates fast on a response to the Dollar.. This is because they are operating in Indian Rupee and they are subject to big currency risk. Their investments in US are in Dollar terms and so there is no currency risk there.
But Astro points to a rise in Equity in the first quarter of 2017.So maybe the Don would be India friendly in his policies?