We have been noting that India stands out as an investment destination in a mainly bearish global picture and due to the daily chart pullback on INDY, I thought I’d take a closer look. This ‘+’ update is sent to the entire list because of its relevance to ongoing information in weekly reports.
INDY broke an intermediate downtrend by rising above both the 200 and 50 day moving averages and now appears to be testing these averages, which conveniently reside near the bottom of a trend channel.
The weekly view gives more perspective. As we have tracked in NFTRH reports, India (using the BSE index) broke a downtrend and made a bullish looking pattern. On INDY, weekly MACD is about to go fully positive and RSI has been stair stepping into positive territory. 27 +/- is key support and if it holds, we could be looking at a resumption of the long-term trend.
That trend is illustrated by the monthly chart of BSE that we have occasionally shown and often mentioned in weekly reports. The INDY ETF does not have the history to go back far enough, so here is the Bombay 30 Sensex (BSE) for the big picture perspective.
Buy Target: Long-term investors can take a position now and not worry about a short-term pullback to 27. But if you want to pin-point it, 27 would be the optimal buy level.
Sell Target: Eventual new highs above 33, probably many months down the road.
Stop Loss: Long-term investors may or may not want to use this, but a drop below 26 would be a technical negative (a lower low on the daily chart) that should be respected.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.