Nifty P/E at 37 - MARKET CRASH Very Soon?
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- Опубликовано: 19 сен 2024
- Nifty PE Ratio is dangerously high at 37 - Will Market Crash in 2021?
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Topics covered in this video:
- PE Ratio Explained
- Factors affecting P/E Ratio
- PE Ratio at 37 - Will Market Crash?
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#MarketCrash
I don't know whether market is going to crash or not, but today I learned about P/E ratio. 👍
Correct... Same feeling here....
yes. Mr.P.R.Suresh explanation with details are more awesome. he can start financial tv for individual investor.
yes. Mr.P.R.Sundar, explanation with details are more awesome. He is self made with determined to success. He might have surprised if not become successful; believe that much effort; he might have put to learn the stuffs from basic; by ignoring market noise;
144 anand srini fans dislike
Me too.
Who is watching videos after today's fall..
Ive lost 30k bro
i am pretty sure that he didnt mean the recent crash, because the crash that u r seeing now is fueled by new corona strain.
2700 lost 😭😭😭😭 oh my god please
@@srikanthgajula same here
@@fantomraja9137 Good joke
Investor should prepare their portfolio for 2021, as the stock market enters the final stretch of the year, it's worth looking back on your portfolio to consider what's still working and which strategies are at risk of falling behind.
I totally agree with you, Heading into the new year, investors have to make smart portfolio moves and seek guidance where needed since the future is unknown.
Investors should anticipate the factors that impact portfolio performance and make decisions based on their expectations.
The stock market has been tough this year, started stock investing, and I’ve made more trade losses than profits.
@@sanjayprashad4695 Absolutely.. with the COVID-19 recent outbreak, the stock market provides an opportunity for people to get involved as various stocks will experience tumbling. It’s wise for investors to seek guidance that’ll help to easily navigate lucrative positions to earn from.
@@kumarvenkatesh6600 Understanding the fundamental is the first step to success in the stock market, this year has been quite profitable. For more profitable trades, you should probably get a reliable brokerage.
2020 year is amazing, market all time low and high same year
All time low 😂
@@kanagarajreigns3365 understand his feelings bro 😁👍
Now all time low😂
When it was all time low I was sitting...entered too late around 11500. Anyway made some money.
Yes
Maths teacher is maths teacher, 1/0,infinite I listen only after long back
Fine
I hv many Mentor's Training vdo courses
If u wnt , contct telegrm @ROHITREDE
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The future is all about investing in crypto because it yield the best result.
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@@robertmark6807 Had intrest in investing in Forex and crypto but I was discouraged by friends and family, I was being ignorant though.
@@thomasjeffrey8755 You can profit much in Cryptocurrencey if you have an expect handling your trade.
Sundar Sir + Playack speed 1.5x = Superb combo
Vera level bro ..spr....no only I try 1.5x
I also tried un 1.5x and it's true perfect combo 😊😊😊 I saved my lot of time 😊😊😊🤣🤣
You all probably dont care at all but does any of you know a method to get back into an Instagram account..?
I was dumb lost the login password. I love any help you can give me
@Damon Dallas instablaster =)
@Rory Kamryn i really appreciate your reply. I got to the site on google and im in the hacking process now.
I see it takes a while so I will get back to you later with my results.
I've watched many P/E ratio videos but until this one I wasn't still clear.
Thank you.
That's way of analysis your standing in the winning side of stock market you are really great sir👌
The video I was looking for! Today it's touching 40! Still rising! RIP fundamentals and logic!
people had no where else to invest in back then due to lock down; either gold or stock market was thier options. So this hyperevaluation of stocks was inevitable
Sir you speak in such a way that my BP will only come down.
My view is different.
FIIs have pumped in huge amount of money since October. Question is that when they are going to take it out? How they are going to find buyers for the shares held by them.
Forget about PE ratio whatever it is. Every stock is overpriced now.
well said
L
Market is controlled by FII, DII and other big investors. They will decide when it is going to fall. Retail investors will only watch it.
@Debia Gungte what if DII's resurrect it by buying again?
@Debia Gungte FIIs primarily invest in emerging Markets because of USD depreciation compared to other currencies and add to that interest rates are all time low. When this get's opposite, money will be pulled back and markets can correct. But in house DII has have huge pool of money too who can make the market move.
@Debia Gungte there are many DII fund houses after introduction of mutual funds and ETFs, retail investors........ nobody cares about them, neither in the developed world nor in the developing world.
That water-cooled pc at the back is 🔥🔥
Inox is not part of Nifty. Which Nifty stock has the potential to double it's earning in an year ?. Nifty historical growth rate is 12 persentage. The rally is due to FII inflow. Market will correct atleast 10 persentage once the FII inflow reduce.
Market right now considering only price to book not PE becz of liquidity...
You were telling pe can come to 28 but even 28 is a pe where markets crashed to 10-12 levels historically. Worldwide economy is shrinking only institutions push prices up to exit their holdings. DII are net sellers which we have to consider.
First thing inox leisure is not a part of nifty 50,and secondly every stock of nifty 50 is on all time high . So explanation on pe is not digestable
all companies eps was down in lockdown including PSUs
Although your logic is correct, P/E multiple is still very high if we consider today's market price of Nifty with last year's EPS. Last year EPS was is the range of 400 to 452. If we take that for P/E calculation, then we get 30.44 to 34.4 for Nifty P/E. This is historically very high.
Data speaks a lot, more than anything.... Well explained...
Why is market rising without even a small correction.....will such steep rise lead to steep fall
Innovative person with lots of positive potential
Your content is always amazing. And I always play it at 1.5x. ;)
Kaha se ho Deepak bhai. M bhi soni hu
Market crashed today .....anyways I learned something today
Back to new highs
Accepted sir but if I consider EPS of nifty before covid is around 440 with that calculation if I calculate PE ratio will come at 31.1 which are still very high.
Sir Please make a video on from last 2-3 years Growth rate of EPS of nifty are very slow as compared to previous years what's gonna wrong and when EPS of nifty goes up with high speed
Sir, you are missing one point before CORONA nifty PE reached 28, this 28 is also high PE level...
somebody said there would be a stampede and not an orderly exit
nifty eps is 360; normal eps may be 400; for a nifty pe of 28 the eps should be 490 ; that means 20% improvement in nifty
I don't expect nifty eps of 490 before end 2022
if this analysis is correct , that explains the fall
How many people are here after today crash
That data of PE was for 11dec and today is 18 Dec ...and right PE is 37.84 ...Monday or Tuesday is final crash ... don't wait ...on Monday...sell your portfolio...even all indicators are overbought ...on daily weekly basis and even on monthly a little bit ...so market will correct but immediately atleast 5%-15%
Market may get some corrections after results of major companies declared
The precovid EPS of Nifty50 is around 450. Assume that companies revert their earnings like Maruti by end of this financial year or early next year then PE ratio would between 28 to 30 which is same level as that of the past few years. There will some stagnation and correction in 2021 but not major volatility. Also imagine the amount withdrawn by DIIs from the market for the last 2 months and they are ready in cash to invest during the correction. Hence I am also in the same page of Sundar sir that there is no major visibility of market crash.
Records are made to be broken. Same as the case with Nifty PE
Today PE ration not increased suddenly. Last one month it is high only. When FII decides , crash will be there. Not by PE ration. Only FII decides uptrend or downtrend. Intraday profit is also by FII only . Not PE ratio, not Corona, not vaccine, not stimulus .
Not only that it depends on us fed mood . Once stimulus is witheld then also market crash
This rally is also sustaining due to FII action on the buy side and the effects of US fed quantitative easing . Be warned about the wave of corporate debt and bankruptcy coming up after US stimulus ends with interest rates continuing at zero . Surely that too will also will cause a reset in price to normalise P/E ratio. Besides the nifty needs a healthy correction to move higher . Won’t be surprised if 8500 on Nifty is seen soon , only to take off to all time highs from there
You always keeping correct scenarios but it’s suitable for big fishes only
Market will not crash much. FII have brought so heavily that they will not let the market move low. DII's have mostly sold and now they are waiting for entry.. No correction will last even a week or days.
Finally in the end, the mathematician in you had came out. Two factors......
Jan '20 - Nifty 12400 PE 27.96 (E = 443) , PB 3,62 (B = 3425), DY 1.24 (D = 154) Now Dec 20 - Nifty 13800 PE 37.84 (E = 365 ,, about 18% less than Jan) , PB 3.89 (B = 3548,, about 4% more than Jan) , DY 1.18 ( D= 163 .. about 6% more than Jan) ----------- Draw your own conclusions from data !
Sir every time you come with different perspective which helps us a lot to indentify the market thank u for ur view sir🙏🙏
Whether it is correction or profit booking Nifty around 600 slashed in a single day. Retail investors should wait and watch for couple of days. FII slowly sell and there will be no inflow in Indian market. Better invest somewhere around second week of Jan 2021.
FII's go for Christmas holidays in this December. I am Sure market will correct
Log bhik mang rhe hain correction ki lekin ye bazzar badi correction nhi dega
Logic seems correct
Sir, a very simple question:
On 20 jan 2020 nifty hit a record high of 12430 and at that time nifty pe was 28. At present nifty pe is 37.81. Now as per your calculation nifty's present pe may be justifiable as company's earnings will improve, then it means that companies's earnings will surpass their earnings in pre covid era by a significant margin, as to again maintain pe at 28 the earnings must be increase by at least by 40% than their earnings in pre covid era?
You have to take this Advice!
Drink alot of water,sleep for at least 3hours a day,Eat well,
Buy and invest in crypto currencies and thank me later🙂!!
Very important😲
Why should someone be depressed in cryptocurrency and stocks when I made $12000 with $2000 in 12days just because bitcoin triggered from $18k to $23k.. Isn't it Amazing?
For real bitcoin is a life changing business .... it's a life saver
Investing in bitcoin now should be at the top of every wise individual's list instaed of waiting for our selfish government
You are right the market is profiting if you are really a good broker or account manager 😄😄
Do you trade alone? Actually I have lost so much trying to trade on my own,looking for a proffesional to start my trade with
yes market may not crash , but it is at upper range of pe .... for nifty , 2 -3 years back your FD rates were about 8 % ... hence pe of fd use to be 12.5 to 13 ...nifty pe top range use to be 26 ...27 , now Fd rates are at 5% so pe of bank FD is 20 .... so nifty pe can remain in range of 37 to 40
Sir, 28 PE is also very high, why do you think market can sustain such a high PE ratio?
Take the example of reliance and explain
Before Corona where the reliance price was and how its earnings justify the current pe
P. R. SUNDAR- " markets will crash that I do not believe "
3 days later ( after upload of this video )
Markets crashed
R.I.P
He did not tell that market will not crash... he just told he doesn’t believe that market has to crash to settle the PE ratio...
In the Maruthi example you shown look at the previous quarter earnings from last year. Now earning reached that level. How earning will be doubled, are you expecting any magic?
For a CA student like me this content is just GOLD.
Exactly
Dear Sir, PE Ratio is calculated on yearly basis(like EPS of Last four quarters) and so INOX, EPS is like Rs3 X 4=12 So even share price of Rs500 , PE ratio would be 42 times(500/12 ) and not 100 times
Please make Part 2 on PE of stocks like Asian paints, HUL etc.
PE for these stocks are of little or no value and these are market leaders so judging them on pe basis is absolutely useless
Market will surely correct at that time when work from home ends because companies are now in dubble profit by reducing electricity and maintenance charges etc
Sir, PE ratio is 37 because earnings have fell due to corona. You should arrive pe ratio based on future earning potential after corona. This calculation is not realistic..
That is what he has said in the video..
@@dayakar210 all genius people. Thanks for a v good discussion. innocent investors lost huge money today.
Even if we don't consider PE ration the market value is at all time high what is the reason for this is it huge liquidity in the market.
i think that is index management.. a separate topic
PR Sunder: pe ratio is the talk of the town..
Me: people who printed Nifty@1000 t-shirt are the real talk of the town 😂😂😂
who printed this? any youtuber? please name it
We agreed and what would happen if mkt crashed. What about our stocks invested in good reputation company? Please explain
Such a great Analysis! Thank you
One of the best clarification of this P/E ratio fallacy !! Absolutely agree with you!! Tbh I think Trump and other world leaders did a great job of avoiding a recession by pumping in money in the capital markets!! Had they not pumped markets would have waited much longer for earnings to improve for P/E ratio to reach 27, but this time around markets will wait much less for Earning to improve so that P/E ratio can rationalise back to 27
Last 5 years market is just going up because of hope that there will be good earining in future.Nothing has changed the ideal and real price should 9000 nifty
Ok then short nifty and short with all your might
@@amit2766 why will i short it it is just my opinion and it is liquidity rally no fundamental
@@karthicksun5 put your money where your mouth is otherwise it's just your verbal vomit.
💯 clear... Optimistic view.. thanks for the clarification
Tell me the P/E of your CPU 😁
So as per your calculations... P/E ratio will correct by earnings per share only if market is halting at the current level..
If market keeps going upwards then P/E ratio will also keep increasing..
I love your Liquid cooled PC❤️
Let's come straight to the point What does EPS trend tell you barring last six months? Is market over priced? I would say of course it is too much money chasing too little free floating stock. Can PE remain high? It can till excess liquidity is flushed out either by central banks or by inflation and taxes.
ஐயா நான் உங்களை தான் என் வழி காட்டியாக தேர்ந்து எடுத்து உள்ளேன்.ஒரு நாள் நான் உங்களை நேரில் சந்தித்து வாழ்த்து பெறுவேன்..
பங்கு சந்தையில் வெற்றியோடு வந்து உங்களை சந்திக்கிறேன்.
P/E 27 and 28 was a major resistance for many years. So can we think Nifty has broken an all time resistance. So can run from here too?
Lesson learnt: don’t mess up with a math teacher 👨🏫
objective explanation nice, nobody is expecting a crash in the market , investors or traders expecting only correction(crash or correction is not same), which is imminent in short term, overall trend still remains bullish
The trend is your friend until it's bend.
PR Sundar 2020
Market did crash today. PE was 38. Reason could be many but such a high indicators were clear signs of a major correction.
Enjoy the party and leave before the music stops. Never in history PE has corrected by earnings increase. Don't fool small investor. Crash happens when Sebi allows short selling.
big investors/institutions connect with retail investors by using the media such as news/social media and they make noise in the market and they exit with the profit where as retail investors are stuck in the loss and these big investors/institutions enter when there is silent and exit when there is noise in the market
U r right sir, 🙏
It is liquidity driven speculation that kept the market high. See Burger King stock, for two days upper circuit and next two days lower circuit. When loss making companies stocks touching 52 weeks high it is a matter of concern.
Your example I understood and agree to some extent, You have taken example of Inox & Maruti but explain it with Banking and Finance companies.
Sir daily I see your video. You don't speak English in American accent but when you talk you talk precisely and clearly same goes for Tamil language you have very good grip on speaking Tamil Language. When I see your video I get good vibration daily. Thank you sir for explaining about stock market topics.
It will be interesting to see the comments of this video now
Yeah..many so called experts will still bark about market crash😂
I hv many Mentor's Training vdo courses
If u wnt , contct telegrm @ROHITREDE
Why mkt crash is expected because the opportunity for the increase in earnings is not in near visinity.Growth rate also not getting back soon.
Looks like it's a good time to SHORT PE ratio 😂
i think its better to short pe not pe ratio.😅😅
Nice one 😂
@@srijansinha4751 😀
@@srijansinha4751 how to short pe ratio, Please tell?
@@manishgaur5861 u can't bro ,it was a joke 😅😂
This is perfect...but only thing is earnings will not shoot up as the market expected
ഇത് വരെ എല്ലാം clear ആണ് സർ 🙏
Even if we take CAPE Ratio, its historically overvalued. Lets just agree that market can remain irrational regardless of the fundamentals as long as global liquidity river is flowing(overflowing in today's case). The day dollar starts picking up, speculative capital outflows can drop the stock market and the money markets like a rock. Till then be cautious.
And I saw you are having a beautiful aquarium in your home.
@@Procop08 😂
😂😂😂
@@Procop08 liquid cooling technology not aquarium 😅
I hv many Mentor's Training vdo courses
If u wnt , contct telegrm @ROHITREDE
Not worried about vix,pe, carona , only go with the trend
Market crashed
I agree with your arguement, but in normal times pe should not be expense.
Sir ,what happened today?😂
ghus gayi sari study
Nifty will go to 15000
No, sensex goes to 22,000
but about p/b ratio which has not been distorted by covid19 . normally market corrects when p/b is at 3.8 .
presently p/b is 3.82 .so market correction can happen anytime.
The macd of s&p is hinting at a large correction in daily time frame
Just as I said the correction did happen 😁
Thanks Sir for sharing your valuable knowledge...
வணக்கம்
sunnews la varthaga ulagam show la உங்க எல்லா வீடியோவும் பார்த்து இருக்கேன் 2014 &2015
Dear sir, Market may crash when FII begins selling; do you think DII has strength to buy in that situation.
DII is already in short selling for many weeks.
Market going straight for 14k , so dont even think of crashing , or you might burn your money with it.
Very nice explanation. Very logical. But there are 2 problems
Most people portfolio showing 50 percent plus profit.
Market not always work on logic. Trend luphoria fake news fear greed is also the factor of rising or falling
"Pe Ratio Changes According To Market Market Does Not Change According To Pe Ratio"
Kids think the things which they study in books will prevail in Real market.
Both reacts according to each other and unidirectional nature is a myth
Yeah, but intelligent person can sense the upcoming disaster...🙂
If the fibonacci levels have any merit behind them (I neither understand it nor do i believe it works in market), but if let's say it somehow is indicative then NIFTY will turn at around 15,500 level, will it be a big dip or a crash who knows !
Nicely explained sir,it has cleared all my wrong assumptions.🙏
Excellent analysis. You are clear so many investors fear. Thanking you sir.
The market will crash when everyone is saying all is well and market is very good & strong. The crash will happen in unexpected time
Why market will crash? If the market crashes, the (paper) fortune of the promoters will be eroded. The FII and DII personnel will be unemployed as with crash in market will discourage investors. The market will correct but where from and upto which point cannot be predicted. So, be always bullish. Correction or crash will be the point of entry. Sir, you have explained the PE very aptly.
You spoiled the video by divering from NIFTY to INOX Leisure