the nifty p/e graph and price chart...

my old nifty p/e graph reposted with some additions:


since last time(april end) have seen some earnings upgrades of about 4.5% being happening for nifty50 stocks.

as said earlier 22-23 times eps is a region where i expect some reaction to come, since its where bear mkt peaks(bear mkt longs exit) and bull mkts intermediate tops have occured(bull mkt profit booking).

that lvl comes to around 4820 and 5040 on nifty, tentative tgts, as per valuations and mkt expectations till further changes happen on this front. while fibonacci 61.8%ret to p/e gives 4761 lvl.


nifty eod price chart:


nifty facing resis below 4600, but it is doing good by maintaining above 4509.40. as long it stays above this or 4500 on closing basis there's chance of moving to the big resis of 4650.

medium to intermediate term supports are as shown on the chart above. near term supports are 4400-4440.

slowly mkt is shifting into overbought though not heavily overbought region. stocks are also going into high valuations. so one must be cautious at higher lvls of the range, while uptrend is still strong and intact, so as long as the support tline is held the dips will be bought by money on the sidelines.

mkt ahead: 02 june 2009...

nifty closed above 4500 global mkts also doing well, support 4100/4000, resis 4650-4700. mkt ranged between these one can buy near supports and sell near range highs, 50% longs are intact since 2600 lvl. global commodities like crude and gold also doing nicely maintaining bullish upmove i guess till the dollar index continues falling and reaches oversold lvls near 75-77.