Nikkei 225, KOSPI and NIFTY 50 Forecasts – Asian Indices Show Hesitation to Follow Through

Nikkei 225 Technical Analysis

The Nikkei 225 found itself a bit negative during the trading session on Thursday, losing 1.32% as I record this video, after initially trying to continue the run higher.

Rising energy costs and a little bit of hesitation about the optimism globally for geopolitical and supply chain matters are weighing on the stock market in Tokyo, but let’s be honest here, we had gone straight up in the air, so a pullback is probably not only expected, but perhaps necessary. This market continues to be very noisy, but I do think there’s a bit of a floor near the 54,750 regions.

Kospi Technical Analysis

The Kospi in South Korea is struggling a little bit more than Japan, as South Korea is an even bigger importer of energy. Samsung Electronics has dropped 3.33% and others in that region of the world have really dragged down markets due to not only the major energy supply disruption that they are concerned with, but the overall geopolitical tensions do tend to have an outsized effect on South Korea.

It is a market that is driven quite a bit by technology. Technology stocks suffer in this type of environment, so it all makes sense. If we do rally from here, it is worth noting that the 6,000 level waits above. We have broken above it previously, but it’s probably worth noting that it was right before the war.

We had a massive run higher, now it looks like we’re going sideways, which you would expect. It looks like about every 500 points or so there is a major reaction.

Nifty 50 Technical Analysis

Finally, the Nifty 50 in India had a single-day record gain on Wednesday, but on Thursday, it looks like we’re going to give a little bit of it back.

The RBI, the central bank in India, has maintained its interest rates and its stance as expected, while Governor Das highlighted strong growth impulses. The commentary wasn’t enough to offset the global geopolitical jitters, though, and we of course fell. Attractively valued financials in India have provided a little bit of a cushion in previous sessions, but the broader market structure has succumbed to profit taking and rising crude oil concerns during the session.

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