New Delhi, Feb. 11 -- Soaring gold prices and a volatile stock market have created a unique setup that many are overlooking: a signal that Indian equities may be readying for a significant move higher.

The point to ponder is the narrowing Nifty 50-gold ratio. The Nifty-to-gold ratio has declined to about 1.7, based on gold's price in India and the Nifty's closing price on February 10. Experts note that whenever this ratio falls below 2.5, the Nifty sees a solid upside.

Before we dive deeper, we must understand that this is just ratio analysis and a trend which has been seen several times historically. However, this must never be seen as a confirmation that the market will certainly rise from this level.

Many major indicators, including...