The Indian market remains rather Nifty
The news the last 18 months has been littered with global financial debacles. The Euro is collapsing, the Yen too. China's economy is being managed to a lower level and rates falling. The US had its share as well. All of this bad news has led to higher markets across the board, albeit with some trepidation along the way.
Kind of lost in the shuffle has been the Indian Nifty Index. The chart above shows that it went through a change of character in early 2014. Moving from a consolidation range to a rising market. Since then it has not looked back. Up over 38% at is peak a couple of weeks ago it is pulling back. But pulling back for the Nifty has meant about a 500 point move on an index holding around 8700. Far less than 10%. This has made for a very tight channel running higher.
How high will it go? Perhaps it hit the top two weeks ago at 9000, the round number. Or maybe it bounces off of the bottom of the channel again, roaring to a new high. I cannot tell you. But I can tell you that from the price action of the last 15 months with the Nifty at the bottom of the channel, it is a good reward to risk area to gain exposure to India. Should it break the channel to the down side then stop the trade out.
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