Home > Macro Trends > Crude at record highs,Dollar falls against rupee-What does it mean?

Crude at record highs,Dollar falls against rupee-What does it mean?

Thursday, September 13, 2007 Leave a comment Go to comments

As I had stated earlier, the dollar looks set to test its earlier lows against the rupee. There is very high probability that dollar actually breaks the 40.10-40.20 level and falls to 39.5 and subsequently 38 before staging some bounce.

With crude oil touching new highs(around $80), a stronger rupee might help India in reducing the oil import bill. Also with the interest cut almost sure in the US, FIIs might be putting more money into Indian markets (due to increased interest arbitrage) making the rupee  stronger.
So what does it mean for our markets? To me its simple -buy oil and short IT. This is what I have been recommending all the week. You might have already seen the upward trend in the likes of RIL/RPL and a downward trend in INFY/TCS.

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Categories: Macro Trends
  1. Uday Kumar
    Saturday, September 15, 2007 at 1:35 pm

    Hi, Can anyone guide me as to how to purchase shares of Bombay Baroda Roadways? AS it is in the Z category, none of my brokers are able to buy it. Please help me if someone knows. Thanks in advance for your efforts.

  2. sagecapital
    Thursday, September 13, 2007 at 2:02 pm

    I look at “correlations” between commodities,stocks and currencies.
    Infosys fundamentals might be good but I might be short on the stock from 2200 levels coz the trend is down!

  3. amol
    Thursday, September 13, 2007 at 1:49 pm

    So now you are started looking into the news and fundamentals also:)

  4. sagecapital
    Thursday, September 13, 2007 at 11:54 am

    MRO Tek has been in a downtrend. The stock is trying to forma bottom around 40 and might turn bullish after it crosses 75-80 level.

  5. sagecapital
    Thursday, September 13, 2007 at 11:07 am

    Then please wait. I cannot say if the price will go up or down in next two years.
    Myself and my clients are either short or staying away from TCS.

  6. akshatclinic
    Thursday, September 13, 2007 at 10:59 am

    I have got Mro Tek which are not moving inspite of company buying its own shares from the market.Should I sell or remain invested?

  7. Senthil
    Thursday, September 13, 2007 at 10:29 am

    Means am prepared to wait for one to two years

  8. sagecapital
    Thursday, September 13, 2007 at 10:15 am

    You have to consider the fact that an “upward trend” may or may not appear!
    What do you mean by “long term player”?

  9. Senthil
    Thursday, September 13, 2007 at 9:50 am

    Hi Sage,

    I brought TCS around 1250………I am a long-term player……should i sell now or wait for upward trend?

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