The Triple X India Strategy

Bullish on Bharat: Mastering the Indian Market

The Indian stock market, often deemed "the final frontier" of emerging markets, presents an intriguing proposition for investors looking for diversification and upside potential. Here's a breakdown of its appeal:

  • Economic Growth Engine: India ranks among the world's fastest-growing economies, propelled by a young and increasingly affluent population, rising domestic consumption, and an expanding middle class. These dynamics are likely to foster growth across numerous sectors.

  • Demographic Dividend: With a substantial young population entering the workforce, India's demographic edge contributes to a skilled and productive labor force. This demographic advantage is poised to drive economic expansion further and benefit businesses serving this enlarging demographic.

  • Under-Penetrated Market: Relative to developed markets, the Indian stock market is less penetrated by foreign investors, indicating room for future capital inflows and growth.

Amplifying Returns with the Triple X 2x India Strategy

The Triple X India Strategy employs the Direxion Daily MSCI India Bull 2X Shares (INDL), targeting 200% of the daily returns of the MSCI India Index. This strategy's approach to entry and exit points is particularly noteworthy:

  • Buy Signal: Utilizes the Relative Strength Index (RSI). A drop below a specific threshold may indicate an oversold condition, suggesting that Indian stocks could be undervalued—a potential buy signal.

  • Sell Signal: Employs the Price to 24-month simple moving average (P/24SMA). A climb above a certain level may indicate overbought conditions, signaling a timely exit to potentially mitigate losses.

This blend of RSI and P/24SMA serves as a strategic approach, allowing investors to engage with market momentum while managing risks associated with overvaluation.

A Word About the Direxion Daily MSCI India Bull 2X Shares (symbol INDL)

The Direxion Daily MSCI India Bull 2X Shares seeks daily investment results, before fees and expenses, of 200% of the performance of the MSCI India Index. There is no guarantee this fund will achieve its stated investment objective. This leveraged ETF seeks a return that is 200% the return of its benchmark index for a single day. The fund should not be expected to provide two times the return of the benchmark’s cumulative return for periods greater than a day.

Index Information

The MSCI India Index (NDEUSIA) is designed to measure the performance of the large- and mid-capitalization segments of the Indian equity market, covering approximately 85% of companies in the Indian equity universe. One cannot invest directly in an Index.