LIVE Market Technicals with CK Narayan

If you care to look at technical charts before taking investment/trading decisions in the stock market, this is the place you should be visiting regularly. CK Narayan of Chart Advise, Dalal Street's most seasoned and arguably senior-most expert in market technicals, will share his technical tips on the go right here on this page. Stay logged in!

Throwback rally in dollar likely
Dollar index extended its slide to the seventh consecutive session on Monday with a noteworthy break below 94. One of the prime reasons for its weakness is the strength shown by Euro (its prime constituent) as well as gains in other currencies like GBP and Yen. But the main reason appears to be a strong rally in gold which is carrying the yellow metal to near all time highs. It seems that the world is shifting towards gold as a safe haven from the US dollar.

But at this level the DXY has retreated to the 61.8% retracement zone and is also oversold on the daily momentum charts. Hence, it is possible that we may see a throwback rally in the greenback which should carry it back to around 96.50 levels. However, this may be just a rally with an overall decline in the index. We may see a consolidation type move with a downward bias for some time to come.

Infosys set to rally
We saw a big gap up in Infosys stock on the day following its June quarter results. Prices have managed to hold that ground ever since and absorb all the selling over the last 6 sessions. Now, we see a determined new upward thrust that promises to carry prices higher in the near term. The uptrend in the stock has been supported by a trailing price indicator which is now at around Rs 880. One can go long with this level as the stop for a positional play that should soon see Infy cross the four-digit mark.