Nikkei 225, Kospi and Nifty 50 Forecasts – Asian Indices Noisy to Kick Off Week

Nikkei 225 Technical Analysis

The Nikkei 225 in Tokyo rallied a bit during the early part of Monday. It did give back some of the gains, though, but ultimately showed signs of consolidation where we sit near the 56,400-yen level.

Short-term pullbacks are possible and, for that matter, even likely, but I would look at the 50-day EMA and the 54,750-yen level as a potential floor in the market. To the upside, we have the 58,800 level potentially offering a target.

Kospi Technical Analysis

The KOSPI in South Korea gapped lower, although it’s worth mentioning that it has clawed back some of those losses. I think ultimately the market might go looking to the 6,000-level given enough time, but it might take a minute to get there.

Short-term pullbacks open up the possibility of a drop back down to the 5,500 level, but I don’t think we’re going to see anything more dramatic than that as things stand. After all, we’re starting to see people price in the idea that at least there is still a ceasefire in the Middle East and therefore it means that there is at least some hope of a recovery in global supply chains.

Nifty 50 Technical Analysis

The Nifty 50 in India gapped lower but has turned around to wipe out quite a bit of the losses and now looks like it’s threatening the 24,000-rupee level again. The 50-day EMA sits at 24,186 and a break above there could get momentum traders back into India, which had been beaten down so severely before. This could be thought of as a potential “value play” at the moment.

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