Getting Closer to bounce

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Dear Investor,

We are closer to the end of correction than anybody else might think. The reason why I think so is following chart. We have just touched 150 day line last week. We are also at bottom of support box. Its the bottom of the blue range box. We have two heavy volume buying days. These events point to end of correction. But I want to show another chart.

US Dollar is strengthening. They reported very good GDP. Euro zone troubles are not easing for now. All this will add further strength to US Dollar. The USD has just crossed above 150 day line and it is still holding it. This time it is not crossing back quickly below 150 day line. This is very dollar positive and gold negative. FII will definitely sale there positions if this continues to rise. I believe they already have started selling. These are the smart money owners of the market. They are always ahead of the crowd. They sell their positions when everybody is willing to catch the bottom and step out. Of Course they will provide support when the valuations become cheap and hold your sold positions to sell it back to you when you are ultra excited to double your money. Any ways, Dollars strength is not good for NIFTY in near term.

Here is the most interesting chart of this week. Comparison on USD performance to NIFTY performance. Red line is USD. Black line is NIFTY. If you look carefully as the dollar continued its slide NIFTY continued to ride higher. Now Dollar is rising and NIFTY is falling. If our range bound market thesis is right then we are very close to the end of correction. But you need to watch the Dollar. It will invalidate everything else on other charts

Following stocks are at the bottom of the range

Thanks
Anil
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