Reversal for India?

Over the weekend, as I was reviewing the international stock indexes, I generally found that most are due for some major selling in the next few weeks and overall, things looked pretty weak. That was the case till I came across the Bombay Sensex Index - that of India. It has had a rough time over the past year falling from the all times highs near 21000 to the current level around 14961. Over the past month, a reversal of sorts has been taking place as the Sensex found support and is bouncing. Is this a move that is sustainable?

Not sure. My overall rating on the Indian market is still negative but this current move, occurring while the rest of the world feels the pain, has me wondering if there is now going to be a shift into the Asian markets, away from the Latin American markets. Will money start to pour into these once loved markets? Well, from a technical perspective, I am getting optimistic...on India that is. If this index moves past the 15,500 level convincingly, we could be looking at a re challenge of the highs. A move up in such a fashion could get the emerging market flows going once again and a global stock rally would not be far behind.

Conversely, as I mentioned earlier this week, the global markets are in a bear market. The weekly of this index is still pretty weak and argues for higher levels but not the previous highs. More aggressive traders might take profits around the 15,700 level which just happens to be the breakout point of the monthly chart. Thus, lets just say that his area is important. I will follow up on this as we get closer. Mark me down for moderately bullish but if the current month moves into the black, I shall dawn the bear suit again.