(XCS5) Xtrackers MSCI India Swap - Ratings and Ratios

The Xtrackers MSCI India Swap UCITS ETF1C (XETRA:XCS5) is an exchange-traded fund that tracks the Morningstar India TME NR USD index, providing investors with exposure to the Indian equity market. As a UCITS-compliant ETF, it adheres to strict European regulatory standards, making it an attractive option for institutional and retail investors alike.

With its domicile in Germany, this ETF offers a diversified portfolio of Indian equities, allowing investors to tap into the countrys growth potential. The funds underlying index is designed to capture the performance of the Indian equity market, making it a suitable investment for those seeking to benefit from Indias economic growth.

Analyzing the ETFs recent price action, we observe a bullish trend, as the last price of 18.84 is above both the 20-day SMA (18.24) and 50-day SMA (17.91), indicating a short-term uptrend. However, the 200-day SMA (19.44) remains above the current price, suggesting that the long-term trend is still bearish. The Average True Range (ATR) of 0.39, representing 2.08% of the current price, indicates moderate volatility.

Combining technical and fundamental analysis, we can forecast the ETFs future performance. With the Indian economy expected to continue growing, driven by government initiatives and a rising middle class, the underlying index is likely to benefit. Assuming the current trend continues, and considering the ETFs relatively low AUM of 127.92M EUR, which may indicate room for growth, we can expect the price to potentially reach the 52-week high of 21.20 in the near term. However, investors should be cautious of potential volatility and monitor the ETFs price action closely.

Based on our analysis, a potential trading strategy could involve buying the ETF on dips towards the 20-day SMA, with a target price of 21.20 and a stop-loss below the 50-day SMA. This strategy is contingent on the ETFs ability to maintain its upward momentum and break through the 200-day SMA.