Indian Stocks Fall 12% in One Day: "Too much downside momentum"
by Chris Carolan
Updated: March 24, 2020
On March 23, India's S&P Nifty stock index collapsed. Before the Asian-Pacific Markets opened that day, our Asian-Pacific Short Term Update posted this chart and comment for subscribers...
[India -- Nifty Composite Index]
The Nifty bounced on Friday. It is important now not to be swayed by short-term countertrend moves. The weekly Jurik RSX shows a near-vertical drop. There is just too much downside momentum to look for a bullish opportunity here. It is more likely that bottom pickers will regret their attempts.
Will Indian stocks find their own path?
As of this writing, India has remarkably few confirmed cases of COVID-19. Yet, Indian stocks have collapsed 40%, much like most global stock markets.
"Will the low coronavirus case count save Indian stocks?"
From an Elliott wave perspective, this is a wrong question to ask. The fact that Indian investors have been selling despite a low case count underscores the point we've made for decades: Namely, investors don't make decisions based on cold, hard facts. They act on fear and greed. And fear has clearly been in control.
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