Nifty 50 Forecast Today 31/01: Will We Break Higher? (Video)

(MENAFN- Daily Forex)

• The Indian index has rallied a bit during the trading session here on Thursday, and it looks like the growth in the India continues to be a major driver here, although it is not as aggressive as it once was.
• That being said, when I look at this chart, I see the 23,400 rupee level as a barrier that we must overcome to see more momentum.
• Right now, we are in the process of trying to bottom out, and it's a messy process, but that makes sense.

There have been a lot of concerns about inflation in India, perhaps stunting the growth of the economy. If we can break above that 23,400 rupee level, then I think that it opens up the door for a recovery and eventually a longer term recovery, maybe as high as 26,000 rupees. Keep in mind that most indices around the world are doing fairly well overall, at least most of the ones I watch. So, India struggling a bit is a bit of an outlier. It's an Indian problem specifically.

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But when you zoom out and look at the last, say, 10 years or so. There's been one or two pretty significant pullbacks, but it's been basically straight up in the air for what seems like a lifetime. The 50-day EMA is starting to try to cross below the 200-day EMA, kicking off the so-called death cross. But quite frankly, as a technical analyst for 17 years, most of the time, at least in an index, when you see the death cross fire off, that's normally the end of the pullback. It's a horrible signal, but people will be talking about it. So, I thought I'd bring it to your attention. A golden cross on the other hand, does tend to work out better. And most of this is due to how indices are created. They're created to highlight the best companies. So, with all of that being said, I am bullish of the nifty 50, but we need a daily close above the 23,400 rupee level.

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