India: It's Much More Than Bollywood

Among the BRICs (Brazil, Russia, India, China), China understandably receives plenty of attention from traders as high beta, growth issues like BABA SINA WB thrive, or at least threaten, major breakouts. Russia and Brazil are kind of caught in the oil/commodity softness, combined with geopolitical headlines and issues of their own (the Brazil bribery scandal, for example). 

But India (EPI is the country ETF) has been a bonafide monster in 2017, heretofore, and there is not much signaling it is about the stop its run. 

Inside Market Chess Subscription Services, we played MMYT (the India version of PCLN, to a degree) earlier this year on the long side. Since then, both MMYT and VDTH, a thinner but intriguing play, have both corrected. While they corrected, some major India banks trades in the U.S. as ADRs such as IBN and HDB caught a bid. IBN gapped down recently, but HDB remains a stalwart. 

On the updated daily chart, below, you will note a textbook bullish chart, with price threatening to breach a tight base consolidation to fresh highs with rising and properly-aligned moving averages, below. 

A dark horse now becomes Tata Motors (TTM), a name many investors were looking at to make a TSLA-type of move years ago before, well, Tesla actually made that move. But if the India bull has more room to go--and it sure seems that way--then I suspect IBN MMYY TTM VDTH are all in play to follow HDB's leadership.