In terms of PE valuation, Nifty is already trading at a PE of 23 as compared to a historical average PE of 18...
The surge in the markets in January was largely led by positive global sentiments...Also, Indian mutual funds had been buying debt securities for almost whole of November and December...They sold some significant debt securities in the last week of December..
That money would have also gone into equities since there is little incentive for holding cash...
But a couple of not so good news from the US and stretched valuation is making the upside difficult for the markets from here...
I would say that a meaninfl downside would be the trigger for the next rally...typically a pre budget rally...
Actually, most of the chart checkers are feeling that there should be some significant correction, once nifty reach 5450 or so. As one last correction and a rally remains before the one i am speaking about. If things are fine and liquidity remains then we can see another wave of buying which should be the pre-budget one, it should take us to earlier highs of over 6k. But who knows, when everyone expects a rally, we hardly get it!
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In terms of PE valuation, Nifty is already trading at a PE of 23 as compared to a historical average PE of 18...
The surge in the markets in January was largely led by positive global sentiments...Also, Indian mutual funds had been buying debt securities for almost whole of November and December...They sold some significant debt securities in the last week of December..
That money would have also gone into equities since there is little incentive for holding cash...
But a couple of not so good news from the US and stretched valuation is making the upside difficult for the markets from here...
I would say that a meaninfl downside would be the trigger for the next rally...typically a pre budget rally...
Actually, most of the chart checkers are feeling that there should be some significant correction, once nifty reach 5450 or so. As one last correction and a rally remains before the one i am speaking about. If things are fine and liquidity remains then we can see another wave of buying which should be the pre-budget one, it should take us to earlier highs of over 6k. But who knows, when everyone expects a rally, we hardly get it!
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