Hang Seng, Nikkei 225 and Nifty 50 Forecasts – Asian Indices Look to Rally After Wednesday Performance

Hang Seng Technical Analysis

The Hang Seng has found itself up about 2.5% or so at one point during the session on Wednesday as we did break out to a fresh 4.5 year high. The biggest mover was probably Pop Mart or maybe even China Hongqiao, but at this point in time, the broad index itself looks rather healthy. With that being said, a breakout above the 27,500 is certainly something that a lot of people will be watching overall for signs of strength.

Nikkei 225 Technical Analysis

The Nikkei 225 is finding itself right around the 53,250 yen area. It does look like it is trying to continue to go higher. Semiconductor manufacturing is a big leader here, although we do see a little bit of hesitation in this consolidation phase. We had previously gapped higher and then spent the last couple of weeks filling this gap. Now, I suspect we probably look to break the 55,000 yen level and continue much higher. Japan has performed really well most of the year right along with most other indices and therefore, I think it continues to be a big winner.

Nifty 50 Technical Analysis

Turning our attention to the Nifty 50, we have a setup here right at the 200-day EMA that might entice buyers. The 25,000 area has of course been one that a lot of people watch closely due to the psychology, and we’ve had a nice little pullback here over the course of the last couple of weeks that could bring in the bullish traders again.

As things stand right now, it looks like there are a handful of companies that are really jumping the gun here in India gaining 7-8%. I also recognize that the yields in India, although 6.72% at the moment on the 10-year government bonds, are stable. We’ll have to see how this plays out. Right now, it does look very much like a situation where some accumulation is going on. Volume did pick up a little bit in this area, so I’d be watching India at this point.

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