Wednesday, November 25, 2009

Dollar Weakness

We are witnessing persistent weakness in Dollar, which fell to 14 year low yesterday after the Fed said it plans to keep interest rates at "exceptionally low levels" for an "extended period" -currently the Fed funds rate stands at a range between zero and 0.25 percent.
Weakness in Greenback will encourage dollar-carry trades. It means US Investors would buy higher- yielding assets outside America.
This may result in more money flow to Emerging Markets.

Commodity stocks may perform today. Keep on booking some profit as we inch higher.

Sesa Goa has supports at 350-365 and resistance are at 400-430.

One should keep Nifty Index stop of 5000 for all short term long positions as exhaustion signs are still there.

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