This week is extremely important for us because we are witnessing the first breakout of the Indian stock market since it started correcting in February of 2015. Both the daily and weekly chart of the India stock market make our point.
Whether this is a confirmed breakout in the stock market of India is a bit too early to tell. Prudent investors could wait until the India stock market comes back testing the breakout point (around 7800 points in the Nifty 50 Index) which would be the ultimate BUY signal. Aggressive investors can already take a position right now as emerging markets are stabilizing, and, as said many times, India has by far the best setup, both fundamentally and technically (in line with this article on Indian stocks released on Economic Times Of India).
We believe the stock market in India deserves to be an important position in a diversified portfolio in 2016. The breakout we have been anticipating could be happening right now, which is much earlier than expected. Investors should be watching this market very closely, as it has the potential to become one of the most profitable investments in 2016.