India to underperform against Asian peers: CLSA

Laurence Balanco, CLSA says he continues to believe that short-term pullbacks are likely to be only a partial retracement of the September lows before another advance phase takes price action higher into the year-end.

"The Nifty continues its relatively slow recovery off the September low. This lack of momentum coupled with the overhead resistance at the 8,398-8,647 area leads us to expect the Nifty to move into a tactical trading top," he adds.

Looking at the MSCI India (USD) against MSCI Asia-Pacific ex-Japan, it is worth noting the market has traced out a short-term double top pattern which sets India up for a period of underperformance against region in coming weeks, says Balanco.