Hello Guyz Lets have some review of Nifty for coming 3-6 months.
As i have mentioned in headline Stock market to crash soon, yes this can happen very soon.
The reason i am trying to focus on stock market crash is the data which is showing enormous hike the market has taken.
-->Markets trading to almost life time high and entering into overbought zones, Nifty 50 Index has almost climbed 12000 mark and near to its new lifetime high same is for Bank Index (Banknifty) around 31000 mark.
--> the reason for its highly measured Index is PE ratio which is trading around 27.52 mark on 12th November 2019, which makes it highly expensive.
--> Most of people in Stock Market never trade on PE basis, they just trade on indicators and dont know the real meaning of high PE and low PE.
Let me explain you taking the example of Nifty 50 having a PE of 27.52 which is considered high comparing the current market levels.
PE above 24 is high for Index like Nifty and below 20 can be considered as low for Nifty. we can interpret as markets are expensive currently. the same case happened when markets were trading at high PE during 2008 and then the fall begin..
So how do we interpret PE, PE is price to Earning ratio, like PE is 27 it means for every 100 point rise you have to spend Rs.27
Suppose PE was 13, then for every 13Rs nifty will pay you 100 Rs, at that point markets are cheap.
I will explain you guyz about PE in more detail on some other blog, but lets come to the point of market fall.
Yes the fall is sure, there are many bad news like IIP data is bad, economic slowdown, Moody downgraded the Indian Markets.
But the real reason for fall is something else, will surely share you more data points soon.
See you soon..
As i have mentioned in headline Stock market to crash soon, yes this can happen very soon.
The reason i am trying to focus on stock market crash is the data which is showing enormous hike the market has taken.
-->Markets trading to almost life time high and entering into overbought zones, Nifty 50 Index has almost climbed 12000 mark and near to its new lifetime high same is for Bank Index (Banknifty) around 31000 mark.
--> the reason for its highly measured Index is PE ratio which is trading around 27.52 mark on 12th November 2019, which makes it highly expensive.
--> Most of people in Stock Market never trade on PE basis, they just trade on indicators and dont know the real meaning of high PE and low PE.
Let me explain you taking the example of Nifty 50 having a PE of 27.52 which is considered high comparing the current market levels.
PE above 24 is high for Index like Nifty and below 20 can be considered as low for Nifty. we can interpret as markets are expensive currently. the same case happened when markets were trading at high PE during 2008 and then the fall begin..
So how do we interpret PE, PE is price to Earning ratio, like PE is 27 it means for every 100 point rise you have to spend Rs.27
Suppose PE was 13, then for every 13Rs nifty will pay you 100 Rs, at that point markets are cheap.
I will explain you guyz about PE in more detail on some other blog, but lets come to the point of market fall.
Yes the fall is sure, there are many bad news like IIP data is bad, economic slowdown, Moody downgraded the Indian Markets.
But the real reason for fall is something else, will surely share you more data points soon.
See you soon..
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