Deven Choksey of KR Choksey Securities said the Sensex is in a range of around 16,340 at lower levels and around 17,200 at higher levels. “The markets should move rangebound and consolidate in a particular band and then decide further movement thereafter.” He feels the Nifty would touch 5,100 levels once the profit booking in Reliance ends.

Excerpts from CNBC-TV18's exclusive interview with Deven Choksey:

Q: How will the May series open up?

A: Looking at the rollover position at this point in time, and the kind of confidence that I see in players at lower levels, I find that the May series should be slightly more productive than what we have seen in April. In about 245 companies, which have came out with their results, most of them have come out which quarterly performance and year-over-year growth of around 36%.

Growth in yearly performance is also suggesting that all is not bad as far as the corporate working and earnings outlook is concerned. Looking at the technical levels also, one finds that yes it should be a comfortable upside going up. One would be a little bit watchful about some of the global data coming in by the end of this week. Probably, that should set the vision thereafter. As of now, the Sensex is in the range of around 16,340 at lower levels and around 17,200 at higher levels. The markets should move rangebound and consolidate in a particular band and then decide further movement thereafter.

Q: Volumes are extremely low on a day like today, participations is a lot quieter than it has been these past few rollovers?

A: Yes. FIIs have restricted themselves to rollovers. There is not much fresh participation today. Local funds are also not participating in a big way because there is some amount of profit booking tendency at this point of time. Those who had taken positions at earlier levels are booking profits as well as those who have cut short their positions, because the indices are not showing momentum beyond 5,000 Nifty levels. People are analyzing results. Some funds have indicated that they would start shuffling their portfolios into some of the clarity stocks which probably would give better returns over a period of time.

Q: What’s your feeling what will we see first 4,800-5,200 on Nifty?

A: I don’t know whether we will go to 5,200, but there is a possibility of going up to 5,100 going forward. 4,800 would be too far at least at this point of time. In he last three days, we see the Nifty staying around 5,000 levels. Reliance is not moving up. May be it is cooling off and taking profit booking. Once this profit booking in Reliance ends, we will once again start the rally and that would be the time where you will see 5,100 kind of a levels on Nifty. I am a little bit more optimistic as far as upside is concerned.

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