Udayan Mukherjee says market may remain cheerful till budget

If flows are not too badly affected because of geopolitical tension and there is no large scale sellout or profit taking by FIIs then the Nifty has a good chance of holding 12,000 levels and the midcaps and smallcaps may continue to outperform is the word coming in from Udayan Mukherjee of CNBCTV18.

According to him, the local focus is solely on the midcaps and smallcaps and not so much on the Nifty. "The Nifty faces resistance around 12,300 or so. It can remain range-bound but as long as the larger universe of stocks continue their outperformance, the market mood can continue to be cheerful till the budget,” he added.

Talking about market rally, he said, “We can congratulate ourselves on saying that we are almost close to a bottom or we have bottomed out. I don’t know whether that is sufficient cause for the market to rally. The market is rallying only on 2 things; principally on liquidity from SIPs and from FIIs, which is not drying up and the second is some kind of hope that the government will do some kind of action fiscally maybe and that may lift the boat of a lot of stocks.” So, other than these two there are not many reasons for the market to rally significantly, said Mukherjee.