Nifty PE FOR 1 YEAR - Current value 18.5

Nifty PE FOR 1 YEAR - Current value 18.5

• NIFTY P/E is the best indicator which helps long term investors to decide when to enter and when to exit.
• For past 1 Year Nifty has Fallen from 24 to 18.5. This shows the weakness in Market.
• Long term can start investing in staggered manner after P/E goes below 18. P/E generally can go till 15 and Bouce back from there Sharply.
• As India is still in Growth Phase, we can see the stocks booming.
• Current fall is because of Global factor and US probably going into recession again.

Dec Nifty PE ratio 2015

Dec Nifty PE ratio 2015

• PE is nothing but Price to Earning Ratio. It Shows how much times are we ready to pay for the actual earning. So If Nifty Stock Earning is 1 Rupee, We are currently paying or willing to pay 21 Rupees.

NIFTY PE is still high at 21.63 after recent market crash

NIFTY PE is still high at 21.63 after recent market crash

• Recent crash has not give much attractive valuation for Nifty. Its still in 21.63 which is high.
• We feel more correction is left and Nifty will come around PE 18.
• We will see in coming days how this pans out. We wont see a drastic fall, but a slow erosion is what we expect.

Nifty Price/Earning Ratio (PE) Chart for 2015

Nifty Price/Earning Ratio (PE) Chart for 2015

• Nifty PE ratio is a very good indicator to decide when to enter the and when to Exit.
• As you can see from above 6 months chart, we see resistance when it goes above PE 23.
• The firsttime when it break up above 23 in month of Feb it stayed there about for 1 month. That was because of the Budget hopes.
• The secondtime it went above 23 on April, it came back down within 20 days
• So you can see clear resitance once it crosses 23.
• So wait for this time when it goes above 23 and it starts falling from peak you can go short and make money. 

Should you buy Share now as the market has fallen 1400 points- No not now

Should you buy Share now as the market has fallen 1400 points- No not now

• Lot of experts in blue channels are suggesting to buy stocks right now as it has corrected good.
• Has it?, The answer is no. All those who entered in the last leg when the market was high got badly trapped.
• Then you can think i should consolidate to bring my cost down, the answer is no,not yet.
• This is a start of correction after a 1 year long bull run starting from election.
• This will go on for some time at least for another 2 to 3 months.
• We should wait patiently and watch the market,
• Current Nifty PE is 22.4, so its in the oversold range and you need to watch for the earning to see how it goes.
• From the trend of results flowing inits going to be bad.
• So wait for some more correction till Nifty comes down and you see earning start imporving, which i believe it will take at least couple of quarters,
• If you are a safe investor then wait till NIFTY PE comes around 17 or 18. Then you can start accumulating.
• If Nifty PE is around 15 then you can go ahead and buy confidently as its in oversold range and definitely bounce back,

Nifty PE Chart 2014

Nifty PE Chart 2014

• This is a bull year with PE ranging from 17 to 22

Nifty PE Chart 2013

Nifty PE Chart 2013

• This is a Bear market with PE between 20 and 15.

Nifty PE Chart 2012

Nifty PE Chart 2012

• This was a Bull year and Nifty PE was in 15 to 20 range.

NIFTY PE Chart 2011

NIFTY PE Chart 2011

• This was Bear market.Nifty PE dropped from 25 to 16.

Nifty PE Chart 2010

Nifty PE Chart 2010

• This was a bull year Nifty PE was ranging between 20 to 25 range

Bank Nifty PE Chart 2009

Bank Nifty PE Chart 2009

• Bank nifty PE range is 6 to 15 for 2009

Bank Nifty PE Chart 2010

Bank Nifty PE Chart 2010

• Bank nifty PE range is 13 to 22

Bank Nifty PE Chart 2011

Bank Nifty PE Chart 2011

• PE range for 2011 was between 20 to 13.

Bank Nifty PE Chart 2012

Bank Nifty PE Chart 2012

• Price to Earning ratio is an important indicator. It will show you how stretched are the valuations and indication on when to exit the market.
• Curent PE as of Nov is 18.78 which is close to upper limit and has reached this level after April 2011.So please be cautious at these high levels

Below is the 2012 Chart for Bank Nifty

Bank Nifty PE Chart 2013

Bank Nifty PE Chart 2013

• Price to Earning ratio is an important indicator. It will show you how stretched are the valuations and indication on when to exit the market.
• Curent PE as of Nov is 18.78 which is close to upper limit and has reached this level after April 2011.So please be cautious at these high levels

Below is the 2013 Chart for Bank Nifty

Bank Nifty PE Chart 2014

Bank Nifty PE Chart 2014

• Price to Earning ratio is an important indicator. It will show you how stretched are the valuations and indication on when to exit the market.
• Curent PE as of Nov is 18.78 which is close to upper limit and has reached this level after April 2011.So please be cautious at these high levels

Below is the 2014 Chart for Bank Nifty