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Charts & Analysis

Nifty Snapshot: Up 5% in 7 Sessions

The Nifty has closed the week above the 200 Day Moving Average (DMA) and below the 50 DMA, at 5868. We are now 5% up from the very recent lows of just below 5,600 on 27 June.

 

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From a technical perspective we are in limbo – not bullish or bearish – with the 200 DMA providing some support,

The P/E of the Nifty has been rising recently, and EPS has been falling. Current P/E is at 17.87.

For a some strange reason it looks like we haven’t really gone into a deep dive for too long. Even a pure technical move will see the Nifty down once in a while and in six years, we have seen just six months of a move to P/Es of 12, and falling way below the 200 DMA. This is largely due to the increase in global liquidity, which seems to be coming to an end, at least for India.

With the dollar at Rs. 60, the return for foreign investors has been abysmal. If you consider levels of 44 in 2007, we are now about 33% lower in dollar terms – anyone who invested then would have seen a 33% drop just in the absolute value of their holdings.

  • mangoman says:

    FII’s are expecting some moves from India for their benefit before selling their loss making portfolio. They think Chidambaram will go to any extent to save the FII. They are not wrong. So far this is what happening.
    No bottoming out. The FII who first escapes will atleast get his underwear. Others very difficult to get that too.