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How P/E Value Effect To Market Movement?

What is P/E Ratio?

P/E ratio is the current share price to it’s earning per share.

How to take decision based on P/E ratio & how to know that the current market is good for buy or sell?

Let’s Discuss about Nifty and it’s P/E ratio. Nifty represents NSE exchange.

Nifty 50 contains 50 top Indian companies. If Nifty values is going up, then generally we called market is going up or if Nifty value is going down, then market is going down.

As per the history, Nifty PE value moves between 0 to 30.

If Nifty value is coming below 10, then it’s a great time to BUY shares. So, if you are a long-term investor, find best stocks based on fundamental analysis and invest their.

If Nifty value is coming above 25, then it’s a great time to find shorting opportunity.
So, you can earn money in derivative markets.

Nifty PE Value Action Need To Take
Below 10 It’s exceedingly rare, creates buying opportunity
Between 10 to 20 Buy & Hold
Above 20 & Below 25 Booked 80% profit of your portfolio
Above 25 It’s exceedingly rare, creates selling opportunity

 

Steps to know about Nifty P/E value in www.nseindia.com

  • Open www.nseindia.com
  • Hover Product Tab & click on Indices
  • Expand Historic data
  • Click on search under “P/E, P/B & DIV”
  • Select time & P/E
  • Click “Get Data” button
  • You will get the result
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