Oversold zone
Nifty PE is in oversold zone when it reaches below 12.5. How ?
See on chart. It touched below 12.5 for 5 times in 10 years History since 1999.
1 Instance Nifty was 930 points in Jan 1999 when Nifty was below 12.5. From there Nifty rose to 1760 points which is almost 100% return in 1 year.
2 Instance Nifty was 860 points in sep 2001 when Nifty PE was again below 12.5. From there Nifty rose to 1220 in 6 months. Which is again 50% return in 6 months.
3 Instance Apr 2003, Nifty 880, Nifty PE <> 25, Nifty fell 54% from 1760 to 860 Points in 19 Months. Huge fall.
2 Instance Jan 2008, Nifty 6300, Nifty PE > 25, Nifty fell 64 % from 6300 to 2250 points in 10 months. Huge fall in less time.
Also do not forget that 2000 and 2008 years were also End of 8 year cycle of Markets.
So People, Analysis of few hours in a week or Month can also get you answers for the most important questions in Market :- what next and when ?
“Never overlook anything in your life, B’cos Gud times will give happiness and Bad times will give Experience. You need both to be different than world.”
Nifty PE is in oversold zone when it reaches below 12.5. How ?
See on chart. It touched below 12.5 for 5 times in 10 years History since 1999.
1 Instance Nifty was 930 points in Jan 1999 when Nifty was below 12.5. From there Nifty rose to 1760 points which is almost 100% return in 1 year.
2 Instance Nifty was 860 points in sep 2001 when Nifty PE was again below 12.5. From there Nifty rose to 1220 in 6 months. Which is again 50% return in 6 months.
3 Instance Apr 2003, Nifty 880, Nifty PE <> 25, Nifty fell 54% from 1760 to 860 Points in 19 Months. Huge fall.
2 Instance Jan 2008, Nifty 6300, Nifty PE > 25, Nifty fell 64 % from 6300 to 2250 points in 10 months. Huge fall in less time.
Also do not forget that 2000 and 2008 years were also End of 8 year cycle of Markets.
So People, Analysis of few hours in a week or Month can also get you answers for the most important questions in Market :- what next and when ?
“Never overlook anything in your life, B’cos Gud times will give happiness and Bad times will give Experience. You need both to be different than world.”
