IC News - Midcaps USDINR and Healthcare

Published: Tue, 11/24/20

The rally has turned relentless and rightly so. First no one was convinced of the rally for 6 months and now the FOMO has everyone writing about the new bull market. So the momentum is now in overdrive but as we get higher you will get Vertigo, and so will the market. Stay safe not just financially but from the second coming of Covid as well. Higher markets do not mean the second wave ended. It just means that markets want you to ignore the health and wealth of your family. Don't.

Rohit Srivastava

The Truth About the Markets

Today's Updates curated for you

BSE Healthcare Index

The move higher in healthcare appears to have begun with the index making a higher high in minor wave iii today.

USDINR

USDINR stopped making new lows after the 1st of September. The October rally and the November rally have resulted in higher bottoms in the USDINR resulting in a long inter-market divergence between the Nifty and the currency pair. Now that the dollar index itself has not broken it September low, if it bounces back below is the alternate wave count for the USDINR that can kick in. In the last few days, it has taken support on the 40-day EMA. If the low of 73.9950 holds then we may start minor wave 3 of C up. Wave C can go to the 61.8% retracement mark near 75.42 or the top end of the rising channel near 75.70 in a larger X wave before it is complete.

BSE Midcap Index

The BSE MidCap index is in the 5th wave inside the channel from May 2020. Within wave 5, iii=i, and we are in wave v, where v=i points to 17,277. This would be just below the yellow channel line at 17,580. The daily RSI is already at 83 and the relentless rally may continue to push it higher till wave v of 5 completes. Enjoy the ride till at last. In blow-off moves sometimes Midcaps can also overshoot and in fact, they always did so in the old days. So if the move goes on till beyond the yellow line too I would not be surprised. It is a test of patience.

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Rohit Srivastava
www.indiacharts.com
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