Saturday, February 12, 2011

Nifty PE is a Good Indicator to Buy or Sell Stocks

Nifty PE is a Good Indicator to Buy or Sell Stocks in the Stock Market
Nifty PE is the Excellent Indicator of Value Investing
Many of you may never heard about the term Nifty PE. Let me explain you that What is Nifty PE and how the smart investors use it to take the wise Investment decisions. Well, in the simple worlds, Nifty PE is a good indicator of Value Investing. By knowing the values of Nifty PE, you will be able to know that when the stocks are overbought or oversold.
Historically the Stocks are oversold in the range of Nifty PE 10-13 and overbought in the range of 20-25. After the level of 25, Nifty has historically shown the market crash and shown the rally after the 10-13 levels.
When to Buy? – When Nifty PE Goes Below 13
When NIFTY PE reached levels of 13 , start accumulating the stocks and invest your money in 4-5 installment over some months. Make sure that markets are going up and down and moving in a range. If PE crosses below 11 , its a must BUY !!
When to Sell> – When Nifty PE Crosses above 20
Book the profit once NIFTY PE crosses above 20 , Don’t book all profits at once . Book it in parts . PE crossing above 20 does not mean markets has to fall , its only an indication that markets may be oversold and now “smart people” will starting selling there shares to mad public . Short sell the shares once PE and Markets start falling down from PE levels of 20 . If PE crosses above 25 , its a must SELL !!
How to Get Latest Nifty PE Chart, Performance & other Data?
Well, there are basically 2 sites from which you can get Nifty PE Data. Here are those 2 sites.
- NIFTY DATA: NSE INDIA
- PE DATA: NSE INDIA
Market was oversold when the PE Crossed above 20

IMP website links
http://niftyreport.blogspot.com/                                           - tips service


http://www.co.cc/  - free domain

software provider

http://www.niftysmartcall.com/trading-rules.php  - trading soft ware provider.
http://www.extrafast.onpw.de/?page_id=22120                    - mt4 indicater with immage

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