- The Nifty 50 gapped higher to kick off the Tuesday session, pulled back to fill that gap to reach the ₹18,000 level, only to turn around and show signs of life again.
- Because of this, I suspect that the market is ready to continue trying to recover, and quite frankly the Indian index is by far going to be one of the better performers because India is in a very strong position, to begin with.
- As China continues to falter, the Indians are going to take their business share.
India is without a doubt going to be one of the major powerhouses of the 21st century. In this, I have absolutely no hesitation in saying. If we break above the 50-Day EMA, the Nifty 50 should go looking to the ₹18,400 level, and then eventually go looking toward the highs again. I believe that for all the rest of the world flounders in the first quarter of 2023, the Nifty 50 could very well be one of the major outliers.
Market Continues Being Noisy
We’ve had a nice little pullback, which I think screams a buying opportunity right now. Regardless, it will be an outperform or against other indices so one of the other trades that I’ve thought about taking is to go long India and go short Shanghai this type of pairs trade can make a lot of money if you’re correct. Keep in mind that we are during the holiday season, which also gives the Nifty 50 a bit of an advantage because the liquidity in India will be normal. Unlike the rest of the world, business goes on, as usual, this time of year.
I have the attitude of scaling in slowly and building up a position now that we’ve had this nice little pullback to offer a bit of value. I do believe that the “floor in the market” is closer to the 200-Day EMA at the ₹17,400 level, so I wouldn’t be shocked if we pulled back to bed, but I think that only as to the argument of a longer-term investment type of situation. This market continues to be very noisy, but I do believe is well supported and rightfully so. In fact, it’s very possible I might have my 17-year-old investing in India.
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