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.

To contact the reporter on this story: Nupur Acharya in Mumbai at nacharya7@bloomberg.net.

To contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, Ravil Shirodkar

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