Sensex 20445.04 +375.92
Nifty 6143.4 +113.45
Looking at historical PE charts, one can safely conclude that Nifty or Sensex is nearing its peak. It may take another year before a crash, but its bound to happen.
Current PE of Nifty is around 25.48 and the highest PE Nifty has ever commanded from 1999 is 28.47. It is to be noted that Nifty touched a PE of 27.3 on Jan 15, 2008 around the same time when I first predicted a crash. Current levels are more or less near to the peak. Will we see a downside anytime soon? Well, my sense is that Investors will continue to buy for some time before selling actually begins. However, current levels are certainly not conduisive for long term investment.
Invest for short term(3-6 months) and watch for critical levels explained.
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