It is justifiable for the ASI to trade at 7,500 (at a forward PE of 15.7) only if:@sanju351 wrote:@Antonym wrote:Sure, we could cross the 52-Week High (6,040.86) in the near future. But after that, what?
Unless earnings figures for the Dec 2012 quarter are excellent, I don't see the ASI going much beyond 6,300. In my opinion, a fair trading range would be 5200 - 6300. Since we are at the upper portion of that range, I advise you to trade cautiously and buy shares only after due diligence.
May be but my guess is around 6300 -6600 to be stabilized and if it breaks that may go up to 7200-7500
(i) corporate profits show a significant and continuing increase and
(ii) interest rates decline.
7,500 is possible even if these factors do not occur, but then we would be in bubble territory.