India Funds IFN SCIF – Potential Technical Buys At Support

by Olivier on January 10, 2011

We continue to see healthy Sector Rotation. Even though for now the S&P 500 is treading water, stocks that are part of sectors on the move do extremely well. Solar, Financial, Forestry, Paper and Biotech stocks are but a few that come to mind.

A much broader investment theme I started to monitor a while back is now starting to shape up. I am talking about India, which has the potential to offer outstanding opportunities for decades to come. This is the reason why I already maintain two sector overview charts on my public list. Over time, and as more and more Indian stocks (ADRs) will be listed on US exchanges, I will add further overview charts.

The stocks included so far are the following: IFN – India Fund, TTM – Tata Motors, IBN – Icici Bank, INFY – Infosys Technologies, RDY – Dr. Reddy’s Laboratories, REDF – India, SCIF – Market Vectors India Small Cap ETF, HDB – HDFC Bank, PTI – Patni Computer Systems, MMYT Make My Trip, SIFY Sify Technologies, MTE – Mahanagar Telephone Nigam.

Here’s the ticker symbols list. Simply copy and paste them to create your own watch list on using your favourite chart settings:


IFN India Fund NYSE Hitting Support Technical Analysis Stock Chart Pattern

Up-to-date IFN – India Fund chart on my public list.

As you can see in my weekly IFN – India Fund chart annotations, I see an ABC correction that has run its course or is about to be completed. We have several elements suggesting this could indeed be a potential buy point.

  • The weekly MA 30 is providing support (Weinstein)
  • The upper trend line of the rectangle IFN recently broke out of is providing support.
  • REDF + SIFY the most aggressive small caps are already breaking out to the upside.

The last element, stocks like REDF and SIFY moving up ahead of the indices, tells me traders are willing to take risks as they are probably anticipating a resumption of the uptrend with Indian stocks. For now I will just wait and see what happens and look for clear reversal patterns. The best way to play this investment idea is probably going with either IFN or SCIF the India ETFs. Other available India ETFs are: PIN, INP, EPI

The reason why I closely watch this pattern unfold is because I think odds are high for the overall market to hold up much better if India and the BSE Bombay Stock Exchange 30 Sensex can move up again. India moving up might inspire the  SSEC – Shanghai Composite Index to break out to the upside as well. In any case, that would truly be global sector rotation providing great support for the overall market. Let’s see what happens.

When you are doing nothing, those speculators who feel they must trade day in and day out, are laying the foundation for your next venture. You will reap the benefits from their mistakes. – Jesse Livermore

My public list with all my charts can be viewed here:

Buenas noches!

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