Business debt as a percentage of GDP is reaching what has been dangerously high levels in the past. Borrowing is a good thing for a working economy, but unchecked borrowing can be a bad thing, especially in an economic downturn. Even cheap debt can become unaffordable if a country has too much of it and output begins to slow.
Nifty Future Trading Sentiment reading at extreme. Not a better place for fresh long term investment. Even short term long only investors has to be careful at this levels as extreme bullish sentiment on the street mostly invites very less investing opportunity.
Bharti Airtel is nearing the interesting reference zone. Yes it is nearing multi year high. Year 2011 high comes around 447 and year 2015 high comes around 452. Overall stock is in a broader multi-year consolidation zone. Offered a value buy as well. Despite the competition from Reliance JIO price trading around 52 week high is quite interesting to watch out.
Reliance Infra on the Weekly timeframe sentiment is turning positive which is a bullish sign as medium term trend turn positive. Support reference comes around 490-495 zone and price holding around 508 remains the key for the weekly sentiment to hold positive. News based Sentiment holding positive as Greenko is in talks with Anil Ambani-led Reliance Infrastructure to acquire its Mumbai electricity business for an enterprise value of Rs 10,000-13,000 crore ($1.75-2 billion).
SunPharma recently is on steady declines and the trading sentiment was extremely negative across all the time frame. However on the 4 hourly charts sentiment turned positive and the price rejection came with strong volumes. Possible positive trend reversal can be expected here
Market Cap to GDP ratio aka buffet indicator is a long-term valuation indicator. It is a good valuation indicator. The basis for the belief that market capitalization should match the GDP is that the stock market is considered to be a good barometer of the economy.
SBIN is showing short term price rejection pattern which indicates a possible resistance around 295 – 296 zone. And could test the previous swing low 270 zone in the short run. Price closing above 296 on EOD basis invalidates the pattern.
TCS post the earnings results charts are looking bearish. Stretched valuations might turn down TCS in the medium term down towards a test below 2000. Price action suggests a possible weakness in the medium term.
Century Textiles is showing signs of short term trend reversal as strong resistance building around 1150-1155 Zone. More over the price action points to trend exhaustive trade setups. Price acceptance below 1140 will bring more weakness towards 1120 and 1100 levels.
The P/E ratio of the Nifty 500 is at 28.12. This is very close to all time high and last Jan 2008 PE ratio of Nifty 500 was around 27.07. PE ratio is currently in a overvalued zone which is more than 2 standard deviations from the mean.