As we witness in Feb 2021 the NIFTY PE is Historically High. Following is the Color Legend based the Under-Valued(Green), Over-Valued (Red) months.
Any value above 25 is considered Over-valued.
Any value below 25 is considered Under-valued.
What you have to Infer?
Market is over-valued & it may go same in next few quarters too due to the Recovering Corona & Boosted Economy. One should sell those over-valued Largecaps on the Peak & New buys only under-valued ones.
Stay away from lossy companies as you will be burning the fingers later.
Note: Smallcap & Midcap sector have different Index and it is Moderately Valued.
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