{"id":51742,"date":"2014-05-25T14:23:53","date_gmt":"2014-05-25T18:23:53","guid":{"rendered":"http:\/\/countingpips.com\/?p=51742"},"modified":"2014-05-25T14:38:24","modified_gmt":"2014-05-25T18:38:24","slug":"indian-stocks-you-want-a-real-opportunity-know-when-to-look-for-it","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/05\/indian-stocks-you-want-a-real-opportunity-know-when-to-look-for-it\/","title":{"rendered":"Indian Stocks: You Want a REAL Opportunity? Know WHEN to Look for It"},"content":{"rendered":"
May 25, 2014<\/div>
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Why the Nifty and many other emerging market stocks screamed “Buy!” three months ago <\/span><\/h3>\n

By Elliott Wave International<\/span><\/h3>\n

From Elliott Wave International’s February Asian-Pacific Financial Forecast<\/em> (published Feb. 7):<\/span><\/p>\n

…Bloomberg reports that “more than $7 billion flowed from ETFs investing in developing-nation assets in January, the most since the securities were created.”<\/em> Such massive selling…supports our view that emerging markets are ending<\/strong> large-degree three-wave declines.<\/span><\/p>\n

Conventional observers are asking the question, “Is this 1997 all over again?” (The Economist)<\/em><\/span><\/p>\n

The way we see it, the return of such headlines in January supports another significant low now<\/strong> — from a contrarian perspective.<\/span><\/p><\/blockquote>\n

EWI’s Asian-Pacific Short Term Update<\/em> editor Chris Carolan soon echoed those bullish views. Here is a forecast the APSTU<\/em> made for India’s Nifty Index on March 4:<\/span><\/p>\n

\"\"<\/p>\n

The strong short-term Nifty rally has pushed prices above their upper daily Keltner channel resistance level.<\/span><\/p>\n

Look for this [rally] up to push through the 2014 highs at 6400 in coming sessions.<\/strong><\/span><\/p>\n

The intraday Keltner channel slope is steep, indicating this trend has enough strength for sharp short-term gains.<\/span><\/p><\/blockquote>\n

You’ve already picked up on the indicators we used to turn bullish on emerging markets in general, and on India in particular:<\/span><\/p>\n

    \n
  1. A bottoming Elliott wave pattern – and a start of a strong Elliott wave rally<\/span><\/li>\n
  2. A bearish market sentiment extreme towards Indian stocks, evident by the panicky headlines in January-February, plus big capital outflows from emerging market ETFs<\/span><\/li>\n
  3. The fact that the Nifty broke above a key trend channel. See those two dotted lines in the chart above? That’s the Keltner channel*<\/strong>, a very effective trend-defining tool.<\/span><\/li>\n<\/ol>\n

    As Indian stocks progressed higher, on March 9 Chris Carolan updated his bullish forecast and added this comment about India’s upcoming elections:<\/span><\/p>\n

    Bloomberg<\/em> reports that the Nifty’s rise to new all-time highs on [March 7] occurred “amid speculation the opposition Bharatiya Janata Party is gaining support before general elections that start next month.”<\/span><\/p>\n

    But from the perspective of the Wave Principle, the index’s strong advance was a textbook bullish breakout in a third-of-a-third wave advance.<\/span><\/p>\n

    Volume hit its highest level in over a year. Momentum did as well, which suggests that the day’s advance was part of a third wave. The weekly Keltner channel lies almost four percent above current levels, which also supports clear sailing in the short term.<\/span><\/p>\n

    Conventional analysts can rationalize the rally any way they want, but India’s…bull market will continue no matter which party wins the elections.<\/strong><\/span><\/p><\/blockquote>\n

    By the end of March, Indian stocks shot up 10%.<\/span><\/p>\n

    Then in April, the Nifty added another 4.9%.<\/span><\/p>

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    <\/div>\n

    And just this week — the week of the elections — both the Nifty and the Sensex hit new all-time highs.<\/span><\/p>\n

    Now, Chris Carolan says this in the May 13 Asian-Pacific Short Term Update (partial wave labels shown):<\/span><\/p>\n

    \"\"<\/span><\/p>\n

    The Nifty is up 6.7% in three trading sessions…<\/span><\/p>\n

    Risk management is a never-ending task. It’s always a good idea to reduce exposure when markets move dramatically.<\/span><\/p>\n

    We have to remain prepared for any outcome.<\/span><\/p><\/blockquote>\n

    Chris Carolan is a recipient of the Charles H. Dow Award from the Market Technicians Association. He has his own unique way of looking at European and Asian-Pacific markets that is beneficial for investors and traders alike. Chris will be hosting a free webinar<\/strong> on May 29 where he will share some of his insights into these markets. See below for more details.<\/span><\/p>\n

    \n\n\n\n
    \"\"<\/a><\/td>\nDo You Want to Be Prepared to Capture New Trends?<\/span><\/strong>Then join EWI’s European<\/em> and Asian-Pacific Short Term Update<\/em> editor Chris Carolan, FREE, for a live webinar on May 29:<\/p>\n

    “3 Effective Tools for Navigating International Markets”<\/strong><\/a><\/p>\n

    You will walk away knowing how you can use these 3 tools to forecast markets you<\/strong> invest in:<\/p>\n

      \n
    1. Keltner channels<\/li>\n
    2. Jurik RSX (a momentum indicator)<\/li>\n
    3. And, of course, Elliott wave analysis<\/li>\n<\/ol>\n

      Go ahead, grab your free virtual seat at this May 29 webinar now.<\/a><\/p>\n

      Just tell us where to send your free access instructions >><\/strong><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

      \n

      This article was syndicated by Elliott Wave International and was originally published under the headline Indian Stocks: You Want a REAL Opportunity? Know WHEN to Look for It<\/strong><\/a>. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.<\/em><\/p>\n

      \n<\/div>\n","protected":false},"excerpt":{"rendered":"

      Why the Nifty and many other emerging market stocks screamed “Buy!” three months ago By Elliott Wave International From Elliott Wave International’s February Asian-Pacific Financial Forecast (published Feb. 7): …Bloomberg reports that “more than $7 billion flowed from ETFs investing in developing-nation assets in January, the most since the securities were created.” Such massive selling…supports […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-51742","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/51742","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=51742"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/51742\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=51742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=51742"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=51742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}