The stock market in India is in great shape, outperforming its peer stock markets in the world. That should not come as a surprise because we have been ultra bullish on India for more than 16 months now … and we made it our mantra (almost). 

We are convinced that the stock market in India will have a great bull run in 2018 as well. In this article, we explain why.

Interestingly, the higher the price goes of any market, the more bullish everyone becomes. The same goes for the Indian stock market in 2017. The local version of Forbes released today their bullish India stock market forecast for 2017 and 2018. The analyst maybe used another set of words, but he really meant that the forecast was very bullish, suggesting (much) higher prices. This is the intro of the

The euphoria just does not seem to end, at least that is the mood at the stock markets. India’s two main stock market indices closed at record highs on Friday. And the good news, or the scary bit, depending on which side of investing philosophy you go with, is that there is still more flight for this albatross.

Once there is bullish momentum, everyone jumps on the bandwagon. What happens next is that major financial institutions start publishing bullish reports. Uncoincidentally, a detailed equity research report from Morgan Stanley India, said that “earnings revisions will likely turn positive in the coming six months after six years in negative territory. Valuations are not yet stretched against history, other markets and bonds. Rising demand for equities from domestic households and potential M&A activity could take multiples higher in coming months.”

That is how it always goes. The more bullish the stock market in India, the more frequent the bullish news and market reports.

Bloomberg explains that the current push in India’s stock market in 2017 is caused by local investors taking over from foreign investors.

Whatever the ‘reason’, the fact remains a fact: the stock market in India is in bullish shape.

A Bullish India stock market forecast for 2018

We have news for investors: the Indian stock market will remain bullish until 2018.

As written in this article, the India Stock Market became very bullish once it broke through 9,000 points. That is where we flashed another buy signal, after several ones last year.

The weekly chart on 5 years makes the bullish point.

(Click on image to enlarge)

Smart investors always check charts on several timeframes: daily timeframe (one or two years), weekly timeframe (five to seven years) and long term (+ten years).

On India’s stock market long term chart, see below, we basically see how bullish this market is. Note how important the break above 9,000 points was, see purple circle.

This is extremely bullish. Stated differently, this is another confirmation of the bullish nature of the Indian stock market, and a confirmation that this will continue until (at least) 2018.

(Click on image to enlarge)