I am not a fundamental analyst but i do track some numbers related to fundamentals and PE @ 28.27 is certainly one of the most expensive market that I have seen. (Last time when PE was seen at such high levels was in Jan 2008)
But a few things I would like to point out;-
- 1st being the composition of Nifty - there is a drastic change in weightage contribution. From a time when IT use to dominate the Nifty weightage and contribute more than 30%, today that tag is taken over by the Banks. The top 5 Banks contribute 30% towards Nifty and that's a huge number.
- Now Banks are measured more on Price to Book ratio and that is currently at 3.64 which is much lesser than 6.55 that was seen in Jan 2008.
- Also Dividend yield currently at 1.17 is at much better valuation than compared to just 0.82 seen in Jan 2008 (Below 1 is considered expensive and above 1.8 is considered attractive valuation)
- also the fact that the euphoria associated with such high PE numbers is missing so far especially in small and midcaps makes an interesting case.
There is still some scope left. However No markets can be Superman... Up up and Away. There will be opportunities on the short side too. One just has to wait for the "Opportune Moment"
In a bull market, market has a tendency to see good things even in bad situations and vice versa in a bear market, it has a tendency to ignore the good news and focus more on the negatives.
After all Technical Analysis is a reactive trade. In a sense we are trying to understand what smart money is trying to do or may try to do, and make the most of it by reacting the earliest. isn't it... i simply accept that its all possible and it's all part and parcel of the trade. Chart is always right. It is our interpretation that may or may not materialize. We just have to ensure we lose less when it doesn't work and MAKE IT LARGE when it does.
“We all want progress, but if you're on the wrong road, progress means doing an about-turn and walking back to the right road; in that case, the man who turns back soonest is the most progressive.” – C.S. Lewis
Thanks for ur kind word of advice... "Let it run freely for a while" :-)
Cheers & All the best
Okay I ranted enough.
Thing is majority of people are not preparing for the winters, Everyone is having party.
Who is C.S Lewis btw.
Congratulations on your new role. You are a role model for many aspirants. Tradingview is certainly in good hands and is moving in the right direction. I wish u and ur team all the very best and more success in the coming years.
Once again thanks for all the efforts that u guys have put in to develop and maintain this wonderful forum...
Cheers & Best of luck...!!!
Cheers & All the best...!!!