- The Indian stock market has been a little bit positive on Tuesday, which is interesting because we're sitting at a major support level.
- It looks like a bit of a bounce from here by being the cards for technical traders.
- But there are a lot of concerns with Indian stocks at the moment and the rupee for that matter. Inflation in India continues to be a major issue.
Really, I think you have to look at this through the prism of whether or not we are going to continue to see a little bit of a bottoming and basing pattern, or are we going to see the support near the 22,500 rupee level break down? If we do break down below there, it could be rather ugly, but at this point in time, I would also point towards another technical indicator, which is the 50 day EMA getting ready to close down below the 200 day EMA indicator.
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Kicking off the so-called death cross, the death cross of course is very negative, but it's always late it seems. For what it's worth, this has been the longest streak of monthly negativity in the Nifty 50 in something like 20 years.
Value Play? Maybe.
So, it is definitely getting to a point where you have to wonder whether or not a value play can be had. Financials led the way during the trading session on Tuesday, but it'll be interesting to see if that can continue. If we do break down below the 22,500 rupee level, the next target for support would be 22,000 rupee. If we can break to the upside and get above the 23,500 rupee level, then we could very well see the Nifty 50 go all the way back up toward the 24,800 rupee level, but that would take some type of catalyst other than simply finding support where we are now.
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