We want to approach the market from the top/down and look at it from different perspectives. Today I want to point to two indexes in particular that tell two separate stories but each suggests higher prices are coming for stocks in India.
There are many different Indexes representing equities in India and they are each part of a group of stocks that share common characteristics. The idea is to look at all of them and use each one as a piece of a giant puzzle.
Here is the NIFTY500 which represents over 95% of the stock market capitalization of stocks listed on the NSE. It’s hard to find a more broad measure of Indian equities. I see key support just under 8500 with an upside objective near 10,200:
If you are interested in learning more about how these Fibonacci Projections are calculated, you can read more about that here.
Traditionally the BSE Sensex is priced in US Dollars. Many consider it to be the Dow Jones Industrial Average of India. But I don’t necessarily think that’s fair considering the way it is priced. So here is the BSE Sensex priced in local currency $INR. The way I see it, we want to be very aggressively bullish Indian Stocks if we are above 2080 with a target above 2400:
These are two important indexes we want to be watching that approach the marketplace from two different perspectives. You can always find these indexes updated with comments and annotations at in my Chartbook Premium Members.
If you have any questions, please feel free to contact me directly here.