Technical analyst Anil Manghnani, Modern Shares & Stock Brokers feels that global cues will be the key in deciding Niftys course ahead. He told CNBC-TV18 that one should now closely watch the movements of dollar index and the euro.
The euro is only had a one day rally and is now trading below 1.2430, which means has negated all the good news of the EU statement. The dollar index also closed at 83 last Thursday.
"If the dollar index starts to close above 83 then that becomes a big problem for equity globally and even commodities. A dollar rally normally leads to a global equity and commodity correction," he added.
Meanwhile, he feels that range of 5,400-5,420 will be a major test for the market. The market still looks good for a buy-on-dips, but that dip needs to come otherwise it starts to get a little stretched on the upside, he suggested.
Below is the edited transcript of Manghnanis interview with CNBC-TV18. Also watch the accompanying video.
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