A rangebound session is what describes market best today. The indices consolidated their gains to end just below the 5,000 level. The midcaps put up a struggle today and it did not help that European markets came off their highs. The Nifty closed flat at 4,990 up 4.45 points while the Sensex too followed suit with just a marginal 21 points gain to end at 16438.58.
So, is it time to book profits now?
Sudarshan Sukhani, s2analytics.com is upbeat for higher levels. Hoping for a strong momentum on the upside, he is expecting the Nifty to close 5000 on settlement day.
PN Vijay, Portfolio Manager agrees that the confidence level is getting high in India and the big negatives may flow in from Europe and not from India. Vijay argues that BHEL, L&T, SBI and SAIL considered some sort of pillars of the domestic Indian economy they have all not caved in, which only indicates recovery is just on the cards.
Vijay prefers foreign currency non-resident (FCNR) flows.
Meanwhile, Sudip Bandyopadhyay, MD & CEO, Destimoney Securities warns that IT sector may show some kind of fatigue and the price rally may not continue.
"Definitely, there is a slowdown in Europe and US. There maybe a debate between the Nasscom projection and what Infosys is saying as far as the future potential growth numbers, but undoubtedly the scotching pace of growth, which we have seen over the last few years may not be achievable this year. So barring rupee depreciation, I think the sector will start showing a little bit of fatigue and the price rally may not continue," he explains.