As expected in the yesterday post, Nifty reached the centre of Anthara Gandharam today (16-9-09) and closed at 4958 with a gain of 66 points. Nifty opened at 4950 with a gain of 58 points, discarded gains to touch 4919(11.00), moved in between 4926 - 4949 up to 14.25, declined to 3932(14.52)and zoomed to 4966 at the closing to rest at the centre of Anthara Gandharam (4960). Tomorrow it may not move above 4992 and may decline a little to the negative territory.
Now NSE site shows that Nifty PE is at 22.03. Today morning it showed 21.66 only even after yesterday's gain of 83 points. Perhaps NSE is yet to update it. Let it be the present PE of 22.03. Nandi used to say that it cannot go beyond 22 and above 22 experts say it is a bubble. Is it a bubble ? After the release of advance tax payment data of some of the Nifty constituents, the increase in earnings and the resultant PE for October 09 can be worked out. Definitely that may be less than 22 and hence justifies the up move in the last two days.
1 comment:
respected Nandi,
does that means openin in positive some upmoves and then in the 2nd half selling pressure dragining it down in red.regarding the p/e it currently stand at 22.33 thgh the earnings are a subject of consideration. the charts hold a crucial pivot at 4994 az even after the fall startin from january 2008 the nifty brkd it slipped and again climbed above it forming a "W" pattern suggestin that selling comes at these levels and the drag effect as well as "not left behinds" puttin in money as sun as decline by 5% levels nd again making it reach these levels before the actual selling witnessed. does it really holds that strong significance
regards
RIAN
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