Bulls Tested as India's Nifty Nears a Key Support Level: Chart

(Bloomberg) -- The drop in India’s NSE Nifty 50 Index to a three-week low has brought the gauge to within a whisker of its 100-day average, threatening to break below a trend line that has supported much of this year’s rally in one of Asia’s best-performing stock markets. The weakness -- a reaction to rich valuations and rising oil prices -- provides an “entry point” to long-term investors as the concerns aren’t “structural impediments” to growth, ICICI Securities said in a note on Tuesday. The last time the Nifty fell below the mean, days before last November’s cash ban, the index slid almost five percent that month.

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