Weak Rupee reverses Nifty breakout


Weak Rupee reverses Nifty breakout The earlier breakout in Nifty from 11,350-11,700 zone (refer our report dated Sept 06, 2018) which had opened a smoothjourney towards 12,100 has turned void. Sudden change in open interest data suggests short-term pain for the market.his is after the open interest tally dipped below 2.67 crore mark with decline in Nifty Futures below 11,400 levels. This data suggests that long positions which was piled up at higher levels were forced to liquidate after major set-back in the rupee. In an ideal case, this long addition has scope to expand all the way to 3.75 crore similar to what we saw in Jan2015. The breach of 72 on closing basis in the rupee has created some panic in debt market and this could have resulted in risk-off trade.

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