Breakout In USDINR -
Rising dollar value against Indian rupee is leading to further decline in Nifty 50 Index.
If you think deeply about this, you can see it’s an Indication of FII squaring off or liquidating their holdings from Indian markets.
When FII want to invest in Indian markets; they’ve to convert USD to INR, which would cause the Dollar value to decline against Indian rupee.
Vice versa, when they want to liquidate(SELL) their investments; they’ve to convert INR back to USD, which would cause the Dollar value to shoot up. In the present situation, we are witnessing a similar scenario.
It’s very wise to conclude that FII are driving the Price Action in Nifty 50 or at least majority of the sharp market moves we have seen so far(8000 - 18500), happened because of that.
So in coming days, to get a better insight of Market sentiment in #Nifty50, Traders/Invester should keep an eye on the Price Behaviour of USDINR. Doing so will give an informed perspective to trade the markets.
Rising dollar value against Indian rupee is leading to further decline in Nifty 50 Index.
If you think deeply about this, you can see it’s an Indication of FII squaring off or liquidating their holdings from Indian markets.
When FII want to invest in Indian markets; they’ve to convert USD to INR, which would cause the Dollar value to decline against Indian rupee.
Vice versa, when they want to liquidate(SELL) their investments; they’ve to convert INR back to USD, which would cause the Dollar value to shoot up. In the present situation, we are witnessing a similar scenario.
It’s very wise to conclude that FII are driving the Price Action in Nifty 50 or at least majority of the sharp market moves we have seen so far(8000 - 18500), happened because of that.
So in coming days, to get a better insight of Market sentiment in #Nifty50, Traders/Invester should keep an eye on the Price Behaviour of USDINR. Doing so will give an informed perspective to trade the markets.