Are You Investor?

Or

A Positional Trader

You are a novice in the market & don't know about investments?

You are not familiar with the jargon used in the market like Technical analysis, Fundamental analysis & charts despite all you wanted to build your portfolio & make money in the market, so what is the remedy for this?

Therefore, Today I wanted to tell you how the Nifty PE ratio can be used to identify your entry & exit point in the market.

Lets first understand what is Nifty PE ratio in simple words:

Nifty Price earning ratio is broadly used to identify whether the market is cheap or expensive, as we know being human our tendency to get everything at a cheap price & sell at a higher price, so as per Nifty PE ratio How we can get to know when the market is cheap or expensive?

Here is the Nifty Pe Ratio reading of the last 20 years:


Now if you see, In earlier times Nifty PE ratio has fallen to even 12 or 15 level which is the very low reading of Nifty PE that could interpret as a Cheap market but now the Market has changed FII & DII money inflow has changed therefore if you observe the last 5-year Nifty Pe ratio then its year average has never fallen to below 20 level which is really exciting facts even in recent time Pe ratio has reached to 38 levels again another story.

Let's talk about the recent Year Nifty crash when in March 2020 Nifty has triggered the lower circuit due to COVID 19 pandemic that emerged across the world that time Nifty PE ratio was 21.38 but didn't breach the 20 level despite so many pessimistic situations so what does it mean? Should we wait every time for the Nifty PE ratio to reach near 20 levels for the fresh investments?

However, as per the last 5 year Nifty Pe ratio average we can easily get that whenever the Nifty Pe ratio entered into a 20-25 Zone You can look for fresh investments or start building your portfolio because you don't know when the market will crash by any incident or will rise by any positive news but you definitely know one thing for sure at this time the market is cheap & you can start shopping of Blue-chip company stocks at a cheaper price.

Remember The Great Warren Buffet Line for the Market Participants:



Now it's your choice to be patient at Market Crash or Be Impatient!










Disclaimer :

"There is a substantial amount of risk in trading securities, and the possibility exists that you can lose all, most or a portion of your capital. I cannot and will not assess or guarantee the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The securities mentioned on my blog Site may not be suitable for investors depending on their specific investment objectives and financial condition. The information provided by me, including but not limited to my opinion and analyses, is based on financial models believed to be reliable but is not guaranteed, represented, or warranted to be accurate or complete. The charts depict the results of our models and are not influenced by any other factors except the updated parameters which the models use. The models’ signals should not be construed to be investment advice. The information may contain forward-looking statements about various economic trends and strategies. You are cautioned that such forward-looking statements are subject to significant business, economic, and competitive uncertainties and actual results could be materially different. There are no guarantees associated with any forecast and the opinions stated here could be wrong due to false signals from the models, or the models being incorrectly structured, incorrectly updated, and/or incorrectly interpreted. The signals, forecasts, the BlogSite, and my products and services, only express my opinion of various securities. My opinion will be wrong at times because of the limitations of investment analysis. Investment analysis, whether fundamental, technical, or any other form of investment analysis, can not predict the future and is not a science that predicts precise and accurate results. Your use of any information from the blog site is at your own risk and without recourse against me, its owners, directors, officers, employees, or content providers.