panch-tattav talk…a few points about Nifty



The Nifty and rest of the market has again come  to point where it throws up an opportunity for buying in to right kind of stocks for medium as well as long term. The stock market has given very restless times to the investors over the last five years and there has practically been no returns except that dividends were gained i e just about 7-8% return. The funds with mutual funds etc have not even kept the invested capital safe due to fund management charges etc.


You have been having the advantage of our advice under our system and if you go through the history of the same you may very well judge for your self that investing  under this has been rewarding even in this type of market that have been there for last five years ( there has been a break in advice between 2010 and 2011 on this blog but the same is available continuously on ). Now it will be regular here too, as before.


Coming back to Nifty , I would say that the price to book value ratio of about 3 is very attractive against the present Nifty level of under 5300. The PE ratio is still not very comforting but then if both of these ratio become attractive simultaneously and the economy of the place is like that of India , the investment becomes a must and the case was very same in Dec 2011. Now with budget in sight and state assembly elections not favoring the Congress , the next few days may give and opportunity to increase your equity exposure. This opportunity may well be taken rather than be ignored.. The 200 DMA  is around 5100 and will good support to Nifty, however, when the Nifty fall below this level you would require to reassess the situation in light of new facts and scenario.


Let me discuss a little bit about gold. The gold had touched $800/oz in 1980 after a full bullish run over the decade but it went  back to $300 by 1985 and lost further ground by 2001 and touched low of $257. Indian prices however did not get affected so much due to simple reason that in 1980 the dollar was worth Rs 8-9 and the same has become almost five-six  times costlier in terms of rupees. So when the gold is at its peak just now, it should not be giving any great comfort because the trends or the machinations by the big cartels may take it down the uncharted course without us having any clue about the same. In case of equity investing we have more parameters to decide about the inherent value and scope but in case of gold we do not have that kind of helpful guidance.




2 thoughts on “panch-tattav talk…a few points about Nifty

  1. Krishnakumarji, you have a deep insight of nifty and varios stock markets. I regularly read ur articles and posts. All the best for future.

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