Buy on dips
- Thread starter drsambu123
- Start date
I track nifty PE (which should not be far away from Sensex). Here are the latest numbers...
Current Nifty PE(19-7-11) == 20.57
Sept 10 6233 25.91 (nifty)
PE trend is down. It has come down to the level of Aug-09.
We are just at average level. I will call it buying zone around PE level of 18 or below atleast. That comes to below 5000 on NIFTY level, assuming that earnings don't fall. If nifty earnings fall, then bargain price will be even lower.
Happy Investing
Current Nifty PE(19-7-11) == 20.57
Sept 10 6233 25.91 (nifty)
PE trend is down. It has come down to the level of Aug-09.
We are just at average level. I will call it buying zone around PE level of 18 or below atleast. That comes to below 5000 on NIFTY level, assuming that earnings don't fall. If nifty earnings fall, then bargain price will be even lower.
Happy Investing
mid-caps are clear buy below 15.5 pe and give quick returns if you can tap by tracking daily. don't wait for 15.2 or 14.9, just see 15.5 or below say 15.41-15.49 and buy mid-caps blindly, icici pru discovery, hdfc mid-cap, idfc small and mid etc.
nifty is clear buy at below 19.45. say 19.44 or 19.41. don't wait for 19.3 or low, buy index fund as soon as nifty pe goes below 19.5 and if that day market is down. jm nifty, hdfc sensex plus or idfc nifty can be bought.
right now power and bse-teck stocks are at attractive value though i'll still wait for some correction (~2-3%). reliance diversified power and birla new millennium are funds that should be on radar. auto, banks, oil and gas looks attractive if there is fall of about 4-5%. uti logistic, sundaram energy, reliance banking are few funds to go for.
until there is drastic change in economy we'll have marry go round of pe, going up and coming down. i've made a good money just by tracking pe levels in past 1 year or so. right now i'm fully cash-rich and sitting on edge to buy. power and it/teck will be my 1st buy, oil, auto, nifty and lastly midcap will follow.
timing market for fall of x points is immposible and people miss the bus for this very reason waiting for a level like 18000, 17000 etc. instead pe levels should be gauge to measure market. also fii-dii figures clubbed with crude should be behind mind before making investment decision. kinda confusing, if anyone gets hold of all such data he/she will surely make alot of money! just a tip - crude is not inverse related to indian market in past 6 months. if crude goes up indian market goes up somehow, if it falls indian market falls too.
nifty is clear buy at below 19.45. say 19.44 or 19.41. don't wait for 19.3 or low, buy index fund as soon as nifty pe goes below 19.5 and if that day market is down. jm nifty, hdfc sensex plus or idfc nifty can be bought.
right now power and bse-teck stocks are at attractive value though i'll still wait for some correction (~2-3%). reliance diversified power and birla new millennium are funds that should be on radar. auto, banks, oil and gas looks attractive if there is fall of about 4-5%. uti logistic, sundaram energy, reliance banking are few funds to go for.
until there is drastic change in economy we'll have marry go round of pe, going up and coming down. i've made a good money just by tracking pe levels in past 1 year or so. right now i'm fully cash-rich and sitting on edge to buy. power and it/teck will be my 1st buy, oil, auto, nifty and lastly midcap will follow.
timing market for fall of x points is immposible and people miss the bus for this very reason waiting for a level like 18000, 17000 etc. instead pe levels should be gauge to measure market. also fii-dii figures clubbed with crude should be behind mind before making investment decision. kinda confusing, if anyone gets hold of all such data he/she will surely make alot of money! just a tip - crude is not inverse related to indian market in past 6 months. if crude goes up indian market goes up somehow, if it falls indian market falls too.
SENSEX ROLLING RETURNS FROM 1979
http://www.hdfcfund.com/Calculators...ReportID=C208C983-C4A5-41B4-B245-CB77C8D2EDC3
To conclude, the longer you remain invested in equities
Lower is the probability of loss
The volatility of returns reduces
The returns from equities become predictable
The Sensex Rolling Returns Calculator lets you see for yourself that while there is a risk of negative to low returns in the short to medium term due to the volatile nature of equities, you are likely to achieve superior returns over the long term.
http://www.hdfcfund.com/Calculators...ReportID=C208C983-C4A5-41B4-B245-CB77C8D2EDC3
To conclude, the longer you remain invested in equities
Lower is the probability of loss
The volatility of returns reduces
The returns from equities become predictable
The Sensex Rolling Returns Calculator lets you see for yourself that while there is a risk of negative to low returns in the short to medium term due to the volatile nature of equities, you are likely to achieve superior returns over the long term.
I've made new investment in reliance diversified power sector today and expecting it's nav below 67.50 today's closing basis. BSE Power is at almost 52 weeks low though CNX Energy is still 2-3% away from 52 weeks low. Next on cards is banking, oil and gas and infra. Not good time for index based fund as I expect crazy swings on both sides.
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