Wednesday, 23 May 2012

23 MAY'12: Do you know that S&P CNX DEFTY is very near to December'11 lows?



Calculation of S&P CNX Defty

(Click on image to see enlarge view)
Computations are done using the S&P CNX Nifty index calculated on the NEAT trading system of NSE and INR-USD exchange rate that is based on the real time polled data feed.

S&P CNX Defty = S&P CNX Nifty at time t * Exchange rate as on base date
                                              Exchange rate at time t


It is very clear that this index is used by FII to judge market which is running near December lows. Weak Rupee can do a lot more damage in term of sentiments. INR is hitting 56+ against USD.  RBI is running short of ideas to handle the situation and things are left on time and market. It is indicating that if above index breaks 2950-4940 kind of levels then it can see more massive fall which can be 10-15% in magnitude.

So one must be careful and prefer to stay away from investment buying in all formats. I am sure that you are aware about brutal price hike of petrol by Rs 7.50/ liter.

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Thanks & Regards,
Praveen Kumar
Mail id – Praveen@viecapital.com
Mobile number – 09893369889

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