The relative outperformance of Indian equities may soon be at risk, according to Sejul Gokal, Chief Technical Strategist at GO-TechniKAL Insight.

Looking at a Chart of the Nifty 50 versus the MSCI EM Asia Index, Gokal points out that it is close to testing the rising trendline that dates back to March 2018. He thinks that the reaction when it hits this level will be key in ascertaining whether India maintains its relative dominance or is a relative sell.

Ominously, the Nifty index has broken below its cloud support on Ichimoku charts (see inset) and Gokal says it is at risk of further selling.

See Chart.