One may find Nifty expensive at 11,500, but in dollar terms, Nifty has corrected towards levels prevailing in December 2017 which is around 10,200. The Nifty to USDINR ratio is currently trading near support of 159. With strong consolidation between March-July 2018, it may be poised for a sharp rally in the near term. The upside projection of this ratio falls around 183-184 i.e an upside of 14%.
Applying Elliot wave principle on Nifty to USDINR ratio, it suggest that Wave 5 of Cycle degree remains in progress and within same we have just completed Wave (2) of Minor degree which has landed in support zone i.e. line extended from Wave 2 and Wave 4 of Cycle degree.
With USDINR trading at 72 levels, currently implied Nifty is trading at around 10,200 and has scope for rally towards 12,800-12,900 in actual terms.
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