(MENAFN- Daily Forex)
Unlike the rest of the stock markets that I follow, the Nifty 50 has been much more resilient. Because of this, the market is likely to continue being much more reliable as far as buying and holding than many of the other ones around the world, as India is experiencing growth from a longer-term cyclical process. After all, with the Chinese economy being locked down and so many questions being asked about it, it makes a lot of sense the Indian economy will be the big beneficiary.
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A recent example has been that Apple is going to move iPhone production out of China and into India. It's a longer-term play because not only do we have plenty of manufacturers moving to India, but we also have a better demographic in that country as well. Because of this, that is probably only a matter of time before we see India outperform. We have also the idea that the market is going to continue to see a lot of volatility , but I think now it's obvious that the buyers continue to show signs of value hunting.Market Remains Bullish
The ₹18,000 level underneath should continue to be of interest, as we have seen a lot of noisy behavior, and it was the scene of a certain amount of resistance previously, and it now has the 50-Day ema attached to it. Because of this, I think we got a scenario where that is your short-term“floor in the market”, and I think a lot of people will be looking to get involved in the market or it does offer that type of value, as it is so obviously bullish when so many other stock indices around the world are dropping. Furthermore, if we do see some type of reopening of the global economy down the road, India will be one of the major beneficiaries.
On the other hand, if we were to break down below the ₹18,000 level, then I suspect that the 200-Day EMA will come into the picture as a potential support level, and a buying area. Regardless, this is a market that I think is going to be noisy but bullish in the long term. At this point, I have no interest in shorting this market as it is so aggressively strong in the face of adversity.
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