Should you book profits now? Experts ans

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It was a steady session for markets today. For the second day in a row, the markets closed up with strength, and this time on good global cues. The Nifty, however, could not hold on to the 5,250 mark that it saw in early trade and ended the day at 5,233, a gain of 35 points. The Sensex shut shop just shy of 17,500, up over 100 points

But the highlight in today's trade was volumes. The NSE F&O turnover almost touched Rs 1 lakh crore. For the broader markets, it turned out to be a weak day. The breadth ended in favour of the declines after favouring advances for most part.

So, will the Nifty take out January's high of 5,300?

Around 5,300 on the Nifty is not going to happen so easily, it will take sometime, said Deven Choksey of KR Choksey Securities. "We are going to see some small dip or profit booking around 5,250 levels. I am not too sure whether we will go all the way down to 5,155, but we are going to be taking a bottom support around 5,155 levels and then possibly see the Nifty crossing 5,250." He stated that 5,000-5,100 levels would be a safer bet at any point of time to buy.

Sudeep Bandyopadhyay, Group President, Financial Services, Spice Group, rules out a retest of 5,100 levels. On the contrary, he feels one may see new highs on the upper end. "We are getting positive signals from international markets. Foreign institutional investors (FII) are confident about India. The Index of Industrial Production (IIP) numbers which got announced last week were pretty positive. Overall, I see a good scenario building. The only worry which continues to remain in the domestic market is what action the Reserve Bank (RBI) may or may not take, based on the inflation numbers which week-on-week is increasing."

But Mitesh Thacker, Technical Analyst, miteshthacker.com, is a bit cautious. He is a bit tempted to book profits at current levels even though there are no apparent signs of weakness on the charts.

Explaining the rationale for the same, he said, "After the move started, which was during the Budget week, at levels of around 4,820, the market is already up by around 420-430 points. The good part of last week's consolidation was that we did not even see a 50-points intraday fall. It was a very flat consolidation and now we have moved up again, which means that we have not had any kind of correction for the last 430-440 points and are approaching previous highs. The upsides definitely seems to be capped around 5,280-5,300."

He advises investors to book some profits and wait for the markets to correct. "We might even see levels of around 5,180 or a pullback to 5,160 levels. That could be a good opportunity to re-enter markets."