Saturday, August 29, 2009

Fwd: SENSEX AS ON 28.08.09 AND NIFTY PE CHART

Friends
 
i have attched two charts today.
 
technical observations:
 
we r in uptrend since last 7 dys. monday 8th trading day a fibo no, chances of reversal high
 
rsi(5) is at 77, as per trendline resitance comes at 80
 
rsi (14) at 62, as per trendline resistance comes at 64
 
we are trading at PE of 21+ as per attched chart.historically we have corrected from 22 zone except euphoric years like 1992/2000/2008.time to be cautious and to liquidate holdings in next week.
 
mid and small cap r outperforming since couple of weeks. sensex  has moved in range of 13500 to 15500 apprx for 3 months . in 2007 nov-dec sensex moved like this in range of 18500-20500 for 2 months and gave a break out upto 21200 with help very few stocks and market corrected heavily from there.
 
next week trading range cld be 15200-16200. on break of 15200 we can go for big correction bcz that will violate upmoving trend line running from march lows.chances of market topping out around 16500 are bright. trade accordingly.
 
i may go wrong in my views.
 





2 comments:

  1. rajesh daveAugust 30, 2009

    I agree with you,but if normal People sell all stock then operator will do wrong with them.

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  2. dear pankajji,

    the graph of nifty P/E is very interesting. If you observe peiod between Aug-01 & Aug-03, exactly similar thing happened...a big fall, a rise to almost close to the high of the big fall (in terms of P/E) and a correction then of high magnitude....It remains to b seen if histiry will repeat itself. Thanks for sharing views.

    Venkat

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