- Indian stocks had a somewhat slightly negative trading session on Thursday, but what will be interesting to see is how they react to the beating that both Wall Street and Europe have taken during the trading session in Thursday trading.
- Friday could be a very volatile and ugly candlestick just waiting to happen.
So, it'll be interesting to see if we drop down towards the lows here at the 21,735 rupee area. You'll notice on the chart, there are a couple of downtrend lines that seem to have held. So, I think there's still a lot of downward pressure in India, despite the fact that longer term, I'm very bullish on India. But until we get stabilization in the larger Western markets, it's almost impossible for a place like India to really get a lot of traction. It's also possible that with the tariff wars going on in China, it may have a short-term negative effect as the US and China fights, but longer term, India is right there to pick up the pieces. I think this is going to be one of the most fabulous trades for investors going forward, but we're not there yet.
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Longer-Term, I Love India.
Longer term, I think we not only hit the highs again, but I think we go much higher. In the meantime, I would expect a lot of volatile moves. I would expect short-term rallies to get sold into at the first signs of exhaustion and I'm watching the trend line that we just tested during the previous session, the 22,750 rupee level, the 200-day EMA at the 23,400 rupee level as well. In other words, we have a lot of work to do to get positive. Once we see New York, Frankfurt, London all start to take off to the upside, I think India might be a secret trade that a lot of traders could make a lot of money in.
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