Logically speaking forward p/e holds no ground and is hypothetical or imaginary data . It's a assumption based on past 4 quarters that how will coming 4 quarters or year will be. If forward p/e is 11 than the assumed projected p/e for next one year becomes 11. Projections can become wrong tomorrow suppose govt takes big time decision and market go up 20-25% from here than p/e in no time will touch 25 again. The declining p/e is nowhere necessary to keep going to 11 or 13 or can be projected and hence don't look at jargon words like forward p/e, trailing p/e, rolling p/e and blah blah.. these all are to confuse and earn more and more brokerages. No one will publish such reports when real p/e is down below 13. All broking house in that time will advise to sell. Thats reality and not such jargons like double top, lower bottoms, trinagle pattern, india growth story, gdp at 8-9-10... which are nothing but crap. if a girl is beautiful and good his father won't reapeat my girl is somya, shusil, sundar everyday to everyone he meets. she'll get best boy for her in world. same way if indian economy is good, growing at 8-9-10, why fin min, rbi, fin seceratry, pm and economic advisor comes on tv daily and repeat same thing. that means "daal is kaali".
Now some important things for all who read this thread -
Suppose in a market of rs 1500 turnover when a person (dii and fii) having rs 1000 buys something he'll sell from 3000 to 1001. But 100 normal investors with 5 rs feels at 2500 price is attractive, they than averages out at 2000 and again at 1500 and again at 1300 but than they loose hope and sell his holdings to fiis and diis at 1000 and chain continues. So be a buyer at any levels and don't read or listen what world says, be confirm on your findings and theories. Whatever goes up will come down but won't go to zero levels. Someday someway turnaround will happen. People are satisfied in keeping Fixed deposit for 5-5 years but 5 bad days of market makes them nervous. Keep putting money at all levels. Long term or short term, soon or late, both will pay off, just have paitence.