mkt ahead...nifty 26th sep 2010...

valuations:


nifty valuations certainly above the profit booking p/e zone of 23-24 as marked on earlier pe charts of mine, and becoming more and more expensive.

it is quite an interesting situation wherein nifty50 p/e valuations are high but when compared to year 2000 and also to period 2007-2008 on the price to book value basis, still the 4 p/b has not been crossed yet which infers the cheaper intrinsic value and fundamental strength of the stocks.

lot many stocks still underperforming. so the rally is not broad based, only the fundamentally better stocks have been rewarded with money inflows.

its certainly not a time for investors but as mentioned a good fast trading play, in which some stocks/nifty can rise abruptly and turn down at some point with the same speed.

difficult to give tgts for such upmoves but near to previous highs of 2008 one should exercise a lot of caution.

spot chart:


raise the trailing profit stop for short to medium term longs or medium term long positions now to 5880 closing basis.