Monday, March 20, 2023

Is this time to buy when Nifty 50 or equity markets are falling down? A view point with data evaluation - Nifty @16900

 


Write up on 20th March, 2023. 


Observe 2020 Nifty 50 PE on March 24, 2020 and Nifty 50 Index levels chart, and then what happened.



Now Observe Nifty 50 PE on March, 26, 2021, ust about a year hence, do remember there was a fall due to pandemic in March 2020.



AND,

Now the above chart as on 20th Marc, 2023 helps us compare Nifty 50 today and the Nifty 50 PE as well.


If history is to be understood and applied, this reflects Nifty 50 or how it is said "Markets" are neither cheap to jump in, nor too high to not look at it as value buy and it is termed as "fair value", and as we say one cannot time the market nor any levels, the conclusion is to enter with lumsum not more than 25% of the available amount kept aside as entry money or opportunity money with the right and suitable straty in mind and paper.

Disclaimer-

1- This is to share learnings on how valuations are and need to be seen and this is one of the factors and not the only decision maker comparison.

2- First question always to ask is "suitability" or "Made for me strategy"? and then such logic to be seen and applied

3- Here as an example Nifty 50 - largecap Index is considered and similarly there are more indices where valuation benchmarks change and there could be some Index or co. in Market that is steal buy, or value buy and some other which is still no buy or very costly buy, or even sell at the same levels, and hence a overall analysis is must.

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