INTELLECTUAL TRADING

Nifty Weekly Performance (June 20, 2016 – June 25, 2016) Indian indices witnessed buying interest. For the week, the BSE Sensex was up 2.83%, while the NSE Nifty was up 2.96%.  The index put up a staggering 240 points during the week despite the Brexit woes. The index has shrugged off the worries and headed higher, rallying consistently all five days of the week.  Not right time to invest for  long-term investors           Nifty is now just above the range resistance of 8,300. Nifty is forming higher tops and lower bottoms since last 3 months. Despite Nifty is forming higher tops the RSI has failed to keep with it on both daily and 75 min charts. As now bulls have upper hand now , but now we can not under-estimate the power of bears either.          Right now, the Nifty is trading at a P/E of 22.5. That is historically a level of low returns or negative returns.  The returns for an investor who enters wh...

Nifty PE ratio measures the average PE ratio of the Nifty 50 companies covered by the Nifty Index. PE ratio is also known as "price multiple" or "earnings multiple". If P/E is 15, it means Nifty is 15 times its earnings. Nifty is considered to be in oversold range when Nifty PE value is below 14 and it's considered to be in overvalued range when Nifty PE is near or above 22. The market quickly bounces back from the oversold region because intelligent investors start buying stocks looking to snatch up bargains and they do the exact opposite when Nifty P/E is in the overbought region. Based on historical data and pure common sense, investors can safeguard their investment portfolio and earn handsome profit by following the investment rationale suggested in following table. Check out what Professor Bakshi (a famous Indian value investor ) has to say about Nifty P/E. Recent research done by my firm shows just how dangerous it is to remain invested ...