iCharts Discussions

[kmlsoni]

The following chart shows PE Ratio plotted for Nifty-50 stocks, as taken from NSE’s published data.

The ‘Jan’08 top was the same as Feb’00 high of 28.47. This is the highest level of PE Ratio at least during the last two 8-year cycle tops. Chart reacted from this level and is currently testing its Mar’07 low near 17.20. The chart is so consistent that its shows nice technical channels for both up and down cycles.

The recent low of 16.33 was close to Sensex equivalent level of 8799, and the same attracted buying for a pull-back to channel, supporting my argument of upward corrective phase.