Indian equities have broken the immediate term TRADE line…
As India’s central bankers shift to a more hawkish rate stance and government stimulus programs expire, the bloom appears to be disappearing from the equity market.
If inflation levels revert towards positive readings, the storm clouds could grow darker as consumer inflation has continued to remain stubbornly high despite record low wholesale prices this year. Consumers are already bracing for higher staple prices in the wake of another disappointing harvest cycle. Another weak crop next year could create real pressure.
From a quantitative perspective, the SENSEX has broken down. There is no support for the BSE Sensex until the TREND line outlined below.
Andrew Barber
Director
