Nifty 50, Kospi, and Nikkei 225 Forecasts – Asian Indices React to War Headlines

Nifty 50 Technical Analysis

The Nifty 50 has dropped in India as traders continue to run from Indian equities in a risk-off type of move that, quite frankly, is getting pretty overdone. That being said, there’s nothing on this chart that even remotely suggests to me that we should be thinking about buying.

A bit of a bounce would be needed in order to change my attitude here and at the very least you need to see the Nifty recapture the 23,000-rupee level, something that shows no proclivity of doing any time in the next session or two. So, with that, obviously, India is a very sad place to be right now if you’re an equity investor, but volume is starting to pick up, so we’ll see if we can get some type of bounce; it could be the beginning of a bottoming pattern. I wouldn’t risk it at this moment.

KOSPI Technical Analysis

Kospi has dropped rather significantly, losing 6.5% during the trading session, reaching down to the 50-day EMA fairly soon, I think, and the Kospi, you can also make an argument, has made a little bit of a topping pattern.

It’s early to call that but 5,000 is your line in the sand. If we break down below 5,000, then it almost certainly will send this market plunging quite drastically, probably for a longer-term move.

Nikkei 225 Technical Analysis

The Nikkei 225 in Japan has tested the 50-day EMA during the trading session, but it does look like it is going to struggle a bit. I think at this point in time, you’re still in the midst of a potential basing pattern, so a little bit of sideways action probably is the best thing here.

The 50,000-level underneath is the floor in the market, and with that being said, I think you have to look at it as a binary trade. If we’re above 50,000 yen, then you look for the possibility of a bounce. If we break below there, then the Nikkei 225 is probably going to fall apart quite drastically.

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