- India continues to be one of the better performers that I watched, as the Nifty 50 has bounced from the 50-Day EMA.
- In fact, as I look through the charts, it’s obvious that we are trying to do everything we can to turn the Freddie candlestick into an “inverted hammer”, which is a very bullish sign.
- In that scenario, the market will more likely than not go reaching to the ₹18,750 level.
India continues to be a major beneficiary of all of the Chinese self-inflicted wounds, as China has decided to lock itself down for so long. Business finds itself moving from China to India, which quite frankly was a longer-term projection anyway. The pandemic only exacerbated the situation and sped up the process. I do believe that India will be one of the major players in the world over the next 50 years, and the Nifty 50 certainly gives that impression as well. After all, while the rest of the world was selling off, for the most part, India Chugging along to the upside.
Thinking of Shorting the Nifty 50
The ₹18,000 level underneath should be supported, because it was significant resistance previously. With that being the case, I think we’ve got a situation where you will continue to buy dips going along, with the ₹18,000 level possibly being a short-term floor. The market has been very noisy all along, but I do think that the general trajectory to the upside continues to be what we are looking at, and therefore I like the idea of buying dips to find value.
Looking at the charts, it’s easy to see where we could get to the 20,000 repeat level given enough time, but that’s probably more or less going to be a longer-term shout-out than anything else. I think it’s going to be more of a general grind back and forth on the way out, just as we have seen over the last 6 months. Shorting the Nifty 50 is not something I’ve really explored seriously, but if we were to break down below the 200-Day EMA, currently at the ₹17,500 regions, then we can start to see the overall attitude of the market shift quite drastically, perhaps into a selling mode. Right now though, doesn’t look like we're going to have that issue and therefore the Nifty 50 continues to be one of my favorite indices.
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