Nikkei 225, Nifty 50 and TA125 Forecast – Global Indices Show Promise

Nikkei 225 Technical Analysis

The Nikkei 225 has fallen pretty significantly to fill a gap that had formed on Friday, as we are still digesting the election results in Tokyo, which should lead to dovish Central Bank behavior. All things being equal, this is an index that I do like buying and I want to see a little bit of a bounce to get involved.

After all, you could be chasing a fairly large breakout from the 54,000-yen level, but at the end of the day, I do think that we continue to go higher. I am looking for an opportunity to buy the bounce and jump on the right-hand side of the V.

Nifty 50 Technical Analysis

The Nifty 50 in India has taken off to the upside, gapping higher and I do think it goes looking to the 26,400 level yet again, an area that’s been like a brick wall. This pullback could entice value hunters enough to get involved and start buying up the Indian index as traders look to expand their risk profile into some emerging markets.

Short-term pullbacks perhaps offer the possibility of value, especially with that 50-day EMA sitting just below, so it looks pretty good to me, but I also recognize that this is a very choppy index.

TA-125 Technical Analysis

The Tel Aviv 125 looks like it is ready to go higher after gapping to the upside on Monday morning. We did pull back a little bit and now it looks like we’re trying to recover. This one’s mainly driven by pharmaceuticals, banking, those types of things.

It’s been a stout performer for months now and it looks like we are starting to pick up momentum here in early February to produce yet another strong year as we did in 2025. I think 2026 ends up being pretty good for Tel Aviv itself. Right now, I have a 3,900 shekels floor in the market with the 50-day EMA approaching it, so the downside is there, but it’s only somewhat limited. I like buying dips here in Israel and I think you’ve got a real shot at this thing going higher.

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