Dealing room check: FIIs bullish on India post Budget

Below is a verbatim transcript of his comments on CNBC-TV18. Also watch the accompanying video.

There is a bit of optimism on the street for the Indian markets. Yesterday, despite a bit of correction, there was net buying by FIIs in cash and futures market. This shows that the long-term investors are looking at putting in money in India post the Budget.

The selling largely came from the insurance companies and the mutual funds. This is a critical factor because most of the street does believe that in March end we will see some bit of profit booking coming in by the domestic institution. So that pressure will be there. There is a feeling in the market that maybe 5,150-5,200 will face a strong resistance. In the time being, there will be a bit of supply on those levels. If we manage to breach those levels, then people are talking about 5,400 on the Nifty at least in the near-term.

The momentum is going to be in the midcap stocks. Watch out for the bank stocks because they have increased the auto loans. The banks would be in focus in today’s trade. However, Nifty is going to have bit of resistance around 5,200 mark for the time being.