The iShares India 50 (NASDAQ:INDY) has performed extremely well in 2017, and next year will more than likely bring additional impressive gains.
That’s the message this week from technical analyst Taki Tsaklanos over at Investing Haven, who points out that the country’s benchmark NIFTY 50 Index chart looks very positive:
The long term chart of India’s stock market looks truly awesome. Note this recurring pattern of dips which test the long term rising support line (in red on the chart). They provide mega buy opportunities.
We observe two important resistance lines, one around 6000 points, and it got broken to the upside in 2014. The other one at 9000 points, and it got broken to the upside early this year.
The analyst notes that a 10% or greater pullback is possible next year, however, that would represent a great buying opportunity. In summary, Tsaklanos sees good reason to to be extremely bullish on India for the long term, based on a combination of fundamental and technical factors:
How high can India’s stock market go? The potential is almost unlimited. And that, combined with great fundamentals and not so bullish sentiment (great from a contrarian perspective) is what makes us super bullish on India in 2018 and beyond.
The iShares S&P India Nifty 50 Index Fund was unchanged in premarket trading Tuesday. Year-to-date, INDY has gained 34.17%, versus a 22.32% rise in the benchmark S&P 500 index during the same period.
INDY currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #12 of 79 ETFs in the Asia Pacific Equities Ex-China ETFs category.