Nifty has run up from 4806 (closing 25 May 2010) to a level of 5576 (closing 6 Sep 2010). This is a net gain of 770 points equal to 16% in 4 months!!!
This is a stellar performance for Nifty. In the current zone there is no specific resistance seen since Nifty has not traded in this range for more than 2 years now! This could take nifty to levels beyond 5700, if liquidity and buying continues.
Nifty has strong supports @ 5450/5400/5350. The recent bounce back remains a major support area @ 5350. Below which nifty can correct up to 5250/5150 on lower side.
With Nifty PE trading in excess of 23, it surely seems overbought to me. We are sitting on the second peak ever.
However, the excess liquidity has been keeping our markets rallying. Also, since most world markets have not matched our performance, India and China have been attracting huge foreign funds, hence the out performance.
This situation can be compared to the one in Sept-Dec 2007 where the only direction for the market was up. And then all of us saw what happened from Jan 2008.
Well, if one was to see the past, statistically, Nifty has traded for just 18% of the time at a PE of 21 or higher. The current PE is 23+.
Back in 2007-2008, Nifty PE actually reached 27+ in the mad frenzy and this is how markets are. World over markets are predominantly driven by sentiment and logic is only looked upon in hind sight.
Well, to keep it short & straight, this is the time to take your money and run. This is my personal opinion and I do not seek any agreement from the readers. But for me, this is no buying time and I would rather choose to wait for a better day.
I may be absolutely wrong in the above analysis. However, this is my perception about the current scenario based on the past data. I have tried my best to keep any sentiment out as I write this.
Take it as you like. You have a choice.
good one...........
ReplyDeletetrue religion jeans
ReplyDeletenike roshe one
adidas nmd
longchamp handbags
tiffany jewelry
michael kors handbags sale
oakley sunglasses
north face outlet
tiffany jewelry
michael kors handbags
chanyuan2017.01.22
yeezy boost 350
ReplyDeletecoach factory outlet
michael kors outlet clearance
pandora charms
yeezy boost 350 v2
coach outlet store
michael kors uk
fitflops shoes
polo ralph lauren outlet
yeezy boost
xushengda0310
adidas nmd
ReplyDeleteskechers outlet
timberland boots
air max 2016
yeezy boost
chrome hearts
reebok shoes
adidas ultra boost uncaged
nike polo shirts
nike air force 1