NIFTY 50, NIKKEI 225 and ASX 200 Forecast – Asian Indices Looking Healthy

Nifty 50 Technical Analysis

The Nifty 50 in India seems to have found a bit of support here after gapping higher at the beginning of the week, going into Tuesday morning, and then dropping near the 50-day EMA. By doing so, it looks like the market is trying to find its footing somewhere near the 25,600-rupee level.

If we can turn around and rally from here, it could very well open up the possibility of a move to the 26,400-rupee level, which was the recent swing high. So, with that, I think we need to look out for momentum and perhaps a bit of a shot higher. Ultimately, this is a market that I do think will eventually find its way higher and probably continue to attract as much foreign inflow as India can.

Nikkei 225 Technical Analysis

The Nikkei 225 finds itself at a massive high. It was up about 0.6% early and then drove all the way up to a 3.75% gain later in the day. It does signify right now that dip buyers are very much in control.

I do think that part of this is probably due to the snap Lower House election results, which were expected to give the Prime Minister’s ruling coalition a landslide victory. They are all about stimulating the economy, so I think Japan continues to outperform for a while.

ASX 200 Technical Analysis

The ASX 200 continues to struggle a little bit, but really, at this point in time, I think this is a market that is kind of stuck, mainly due to central bank policy. The Reserve Bank of Australia continues to be pretty hawkish.

Earlier this week, the markets saw the first interest rate hike in over 2 years, and that, of course, shocked the markets a little bit. The hawkish rhetoric coming out of the RBA has also put a little bit of a damper on this index.

Keep in mind, it is heavily driven by commodity prices, but right now, the metals markets are all over the place, and that’s not helping the situation either. With that being said, I think you’ve got a situation where we need to stabilize a bit before you start buying dips, but I wouldn’t be short of this market at the moment.