Nifty overvalued on fundas

Slightly overbought on the fundamental charts.
then again all time high forward p.e = 20
and trailing 26x or so
So maybe we could touch nifty 5000 before bulls notice that fundas cannot really take us higher?
Nifty should target 4400-4440-46xx-4900.
Check old post on w5 for levels.
People also keep throwing up the level 4350 on yahoo but its not showing up on my charts . Might be an arithmetic level.


Be discriminating in selecting stocks.
Even in the current market i can find you stocks trading at p.e.g of less than 1
and stocks trading at p.e.g of >2

My gameplan is to short p.e.g>2 while buying growth stocks available at value prices.


http://www.nationmaster.com/graph/eco_gdp_rea_gro_rat-economy-gdp-real-growth-rate
People do tend to make the same mistakes over and over and over
http://www.investmentu.com/IUEL/2006/20060223.html
'irrational exuberance'


We might be where the u.s was in the 60's/70s but that doesn't mean it is impossible to dip to a p.e of 10/5 or something in a crash scenario.
Refer to crash of u.s market in 1987.
http://www.investmentu.com/IUEL/2006/20060223.html