0USD vs Nifty
As we know, there is an inverse relationship between USD and Nifty. We can predict where nifty is going. First of all, we need to understand why there is an inverse relationship between USD and Nifty. When Foreign institutional investors(FIIs) sell in the Indian stock market, they need to convert INR into USD to take money to their home and hence demand of dollar increases when FIIs sell. When they buy in Indian stock market, they need to convert dollar into INR to invest and therefore demand for INR increases. It is one of the primary reason for the inverse relationship between USD and INR.
Now, where Nifty is going from here?
As per the chart, Nifty is most likely to stay in the range of 7500- 9120(strong resistance) with negative bias. Unless USD slides below, green line traders should not go for long position in Nifty. If USD crosses above blue line on a closing basis, traders should initiate fresh selling in Nifty for the target of 7500(strong support).
We also should be aware of COVID-19 and damage it entails in upcoming days.
