I would like to know the opinion on nifty valuations and forward valuations…
In simple terms, is nifty overvalued or undervalued…and why??
Nifty does not warrant such lofty valuations because of government policies, regulations and bureaucracy, which destroyed ease of doing businesses. New/ innovative things like AI can never be invented here.
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Honestly, I don’t know if Nifty is overvalued or undervalued. This is just something I’ve been observing on the charts.
If you’ve been tracking Nifty since the March 2020 lows, the climb has been pretty crazy, especially after the Oct 2020 breakout. And surprisingly, most of the corrections since then haven’t been that deep.
One thing that keeps catching my eye though is that runaway gap around 20,270 from Nov 2023. And if you look at the price action from Sept 2024 till now, Nifty has basically been moving in a pretty wide 22,000–26,390 range.
The longer-term trendline is also getting pretty close to the lower end of that range. So purely from the charts, I wouldn’t be surprised to see 22,500 at some point.
And if we ever actually get close to that 20,270 gap and start filling it… well, I might sell my house and put it all into the market 
PS: Obviously joking. Hopefully we don’t get that kind of correction.
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So you short when it breaks the trendline