Indian Stocks Riding an Asian Wave

Hello viewers. Welcome to the Fast Profits Daily. Myself, Brijesh Bhatia.

Nifty has reclaimed the 17,000 levels again after the lows of 15,671. If I compare a Dow Jones and Nifty, Nifty has seen around a 10+% recovery from the lower levels, while if I look at the Dow Jones, it's up about 8-8.5% from the lower levels.

So here the Indian markets are outperforming against the US markets and not only Indian markets. If I look at most of the Asian markets, they are coming back very, very strongly. The technical structure indicates that Asian markets are ready to go higher and outperform against the American and European markets.

So let's look at chart by chart what most of the indices are indicating. So they start with the Dow Jones, which is being followed globally.

 

If I look at the Dow Jones chart over here, this is a weekly chart, and if you can't the orange line, it's the 89 the weekly exponential moving average. Most of the traders are investors follow the 50 days 100 days or 200 days. I follow 89 days on now Dow Jones as well as Indian markets, because on a weekly scale of 89 it takes a huge support and tends to be an extraordinary momentum as per the trend setups.

89 even also comes as, if I look at the weekly scale, it comes to around 1.61% of the weekly. So generally we have 52 weeks in a year. If I look at the 1.61 years, so it's less than two years and it also plays an important role. So that's the reason I take 89 as a weekly exponential moving average.

Now, if you look at the momentum, over here, it took support right at 89 exponential moving average. It formed a bullish harmonic, AB=CD and importantly, if you look at candle stick pattern, a hammer candle was formed right at around 98 exponential moving average, with bullish AB=CD harmonic pattern.

Since the hammer, two weeks went into the consolidation, and last week we saw a huge comeback by the Dow Jones. Look at the fall of candle, which was very, very bullish. So Dow Jones being followed globally is indicating a bullish structure over here.

 

Let's move on to the Asian indices and start with Japan. The Nikkei 225 index. If you look at the highs of 2018, 2019, and 2020, it has been re-tested again on the Nikkei after a strong comeback in 2022. 2020 was slightly sluggish for Japan. But now it is being re-testing 200 weekly exponential moving average, plus the previous support.

Now, if you look at the RSI on the lower panel, it has been in the oversold zone, signing off a reversal into the oversell zone. So the tide is turning on the positive side for the RSI with price action showing good support area with weekly averages and trending on the bullish side.

 

Straits from Singapore. If you look at this chart, again a breakout happened into the horizontal channel. It went higher re-tested, went below the upper band of the channel, but it's still holding the lower band, which indicates that breakout has not yet failed.

The structure is still bullish and if you look at again the 200 weekly exponential moving average is playing its part on the Straits as well.

 

Again, this is a second chart from Straits which indicate that the support is very, very strong. Now, if you look at this, it's a Ichimoku technical indicator. If you look at the circles over there, the circles are marked when the prices tested the cloud which is very, very bullish and when the clouds are bullish as per the Ichimoku indicator, it indicates that the bullish structure is still intact on the weekly scale.

So I believe, Japan and the Straits from Singapore, both are indicating a bullish momentum. Let's move on to the South Korea now. The Kospi.

 

Look at the similar structures over here. The 2018 highs has been re-tested. We saw in 2020, it was one of the most outperforming index in the Asian indices as well. But since then, it lost momentum.

Now the breakout has been re-tested. 200 weekly exponential moving average is taking a support area. Plus again the RSI is back from the oversold zone and heading higher. It indicates that the Kospi is still in to the bullish zone and the support area is playing its part.

 

Hang Seng in Hong Kong. Look at the bullish AB=CD right at the previous swing lows. Now it will be acting as a very, very strong support. Look at the last week's momentum, right from sub 18,000 levels to sub 21,000 levels. A V-shaped recovery.

Since I guess not even in 2020 we saw such kind of momentum coming on a weekly scale from the Hang Seng. But again, there are geopolitical news, or something else. But looking at the technical structure, I believe the reversal is very, very crucial. It indicates the momentum is in the bulls' court.

 

Coming onto our domestic index, which is the Nifty. Look and the Nifty. This is the weekly scale. Right at 89 moving average we saw bullish engulfing taking place. on the candle stick structure. It indicates that the momentum is still on the bullish side.

Though we saw a huge selling pressure coming up from 18,600 levels to 15,600 levels, on the back of the Russia-Ukraine war, now the indication is that the bulls are holding on to the strong support zone.

 

Second if you look at the daily chart over here on your screen, we broke out of the falling channel structure. The gap has been taken out.

There has been a slight resistance where the Nifty has been resisting at 61.8% Fibonacci retracement of 18,352 to 15,671. It formed the bearish engulfing but the structure of a bullish head and shoulder, plus the channel breakout, plus the gap area, indicates that the bulls are still in control.

In case you're not following me on my telegram channel, do follow me there because I share the Nifty chance regularly over there or the indices chart where I think the opportunity is there.

I have posted the Nifty hourly chart, which highlights the structure is very, very bullish as of now onto the Nifty and a dip is an opportunity for traders to accumulate the outperforming stocks. I am expecting the Nifty to head higher again because looking at the weekly and daily scales, the setups are very, very strong.

The Asian indices are outperforming again. It's an opportunity for Nifty and Nifty is one of the leaders in the Asian indices which indicates that the momentum is very, very strong.

One chart I want to show you over here is the Sensex versus the MSCI emerging market index.

 

Now, if you look at this, India as I said, India has been outperforming by a huge margin against the emerging markets. Now look at the box breakouts happening and Sensex has been outperforming.

We have somewhere around 12% weightage in the emerging market index and it has still been hugely outperforming. So I said, in Asia, India is one of the leading indices. Nifty is giving a strong upside momentum.

Other Asian indices are back from the support zones of 200 weekly exponential moving average. They are coming back very, very strongly, which could see Asian indices, Asian markets heading higher they may outperform against the US and European markets.

So stay long on the Asian markets. Use the dips as an opportunity to go long on the markets.

Follow me on my telegram channel where I post charts regularly on the Nifty or indices or any sectoral play which comes regularly as an opportunity so that as a trader or as an investor, you can follow such kind of stocks.

Signing off, Brijesh Bhatia.