So what is the next move in Rupee? How will it impact Nifty?
Long term timing lines from previous high and low appear to intersect Rupee movement at its current position. So USDINR may form an important top now and start moving down in the medium term. In other words, Rupee could start appreciating from now on, for the medium term.
This could be bullish for Nifty in the medium term, if the correlation continues.
Looking at Nifty medium term,
Line 1 is the long term timing line for Nifty. She had recently broken it downwards.
Line 2 is its parallel line, which also has been pierced downwards, making the near term trend as down.
Currently Nifty is moving down along line 3.As can be seen, the immediate resistance ahead is at 8400. If Nifty gets resisted here, she may travel along line 3 and reach line 5.This support rests at 7961.
She is unlikely to break this line. If she still does it then she may go to line 6 or 7.If Nifty breaches 8145, she will be in the second circle. Then look to 7961 confidently. If Nifty breaches 8356, then look at 8546 confidently.
As per the Rupee chart, if Nifty bottom out now at these levels we can confidently invest for the medium term. I think June 2015 may provide us this opportunity.