The dollar surged against its peers Thursday and most Asian markets tumbled after the Federal Reserve indicated it will likely embark on a steeper path of interest rate hikes over the next year.While the decision to lift rates had been a certainty, a plan to hike them three times rather than the expected twice jolted trading floors. The news sent the dollar soaring well past 117 yen and its highest level since February, while it also bulldozed other currencies, particularly higher-yielding, riskier, units and those of emerging market nations.
In her post-announcement conference, Yellen said the rise was a reflection of “the confidence we have in the progress that the economy has made and our judgment that progress will continue”.
The US bond yield and the dollar strengthened post the announcement, which is negative for emerging markets, including India, as the risk of outflows goes up. Our indices contained the losses on the back of buying in IT stocks supported by a strong dollar against the rupee. Sentiment took a hit as fears grew that a rate hike in the US would mean higher pace of capital outflows from emerging markets, including India, into US bonds that are considered as a safer investment option.
The Fed's anticipated policy path, and expectations US President-elect Donald Trump will set growth on a higher gear, are keeping Asian policymakers on edge as capital gets sucked out from the fragile export-dependent regional economies toward dollar-based assets
>>> Nifty Hourly Chart <<<
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Its a complicated move - hence volatile is by its nature. Support like 8110 - 8080 and 8030 must hold for Wave C rally.
>>> Bank Nifty Hourly Chart <<<
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Price consolidating inside the expanding triangle for many days - though big events like RBI & FEB Can't break above or below the Triangle shows the strength of the Option Writers. So its quite natural - a PUT or Call Buyer might have incurred a Loss so far.
>>> CNX-IT Posted on 13th Dec, 2016 <<<
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Posted on 13th Dec, 2016 - IT Index on a Break Out. We are Long & See what happened.
>>> CNX - IT - More Rally above 10,300 <<<
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Above 10300 - More Rally ahead as shown on chart. Cheers!!!
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