See Nifty upside capped at 5200 in March: Experts

Excerpts from Closing Bell on CNBC-TV18 Watch the full show » ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets

Q: What about the market, is it looking like a seemingly pause after our big run?

A: If you go back to what happened, the market was highly under invested pre-budget, and you had practically a neutral stand by most investors, we had FII negative figures for a while and therefore the FIIs were also not ready to take the event risk which has corrected itself post Budget.

But hereon I think the market will continue to remain positive, I believe that we are going to see more and more midcap participation because the Q4 are going to be very good, there is not that much of an event risk around us. The global risk is kind of discounted to some extent at least for the next 2-3 weeks. So put that together I would remain positive on the market on the upside.

Q: Would you suspect though there maybe a lag performance between the broader market and the front liners now?

A: I think the front liners unfortunately- we did a stuffy on this for the last one year; it is surprising that the index is not that much higher than what it was to the average of the whole year.

The average if I were to tell you the number would surprise one, it was more than 15,000 and therefore 17,000 is not something which is outlandishly away and therefore the largecaps which people keep saying are overvalued has happened more because the top 2-3 companies have under performed and the rest of the index scripts whether it was autos, banking have all done very well.

So RIL, NTPC and Bharti, ONGC which are very large market cap have done nothing practically for more than 6-8 months. So for the Index to now go up another 5-10%, if these very large market caps of our index don't participate I think there could be perhaps a lull period for the index at 5,100-5,200 whatever technical levels we have. But the broad market will participate even better.

Q:What are the chances that the market may have had only this much steam in itself post the Budget but from 5,100 its going to be an uphill task again and we will probably retrace rather than rise?

A: For me to think that it will go below, 4,700 was what we corrected to is very difficult, I think that is going to take some kind of a real negative event. To remain in the range of 4,800- 5,100 or 4,900 to 5,200, I think that could happen for another 30 days. We have seen these narrow ranges for long periods of time.

So you do get a month in the middle when you get these spurts but otherwise for 15-20 days the market remains in a lull, we have experienced it at various levels and maybe we could that right now too.

Q: How would you be approaching it though in terms of investment call, is it one of those, don't invest in the market periods or would you be looking for buying opportunities at these prices?

A: I would be looking for buying opportunities, I think that the trend of the market is upwards, I feel quite confident about the Q4 numbers, and I believe there could be some positives coming in terms of the US dollar having peaked out.

So given those 3-4 broad parameters, I think the market will continue to look for ways to make money by seeing an uptrend whether it is in this sector or the auto sector or cement or technology, you will see that happening one after the other but I think the trend will be on the upside.

Q: Not a lot to hold out for in terms of cues or domestic cues this month - what do you think will be the moving needle for the market in March?

A: In terms of information flow, I think we have seen best in terms of auto numbers come out already, we have seen Budget behind us. March usually a negative in terms of cues because you have more an more of liquidity tightening, you have perhaps higher yield curve numbers coming out except advance tax numbers which could give some kind of feeling of optimism but by now I think market believes Q4 is going to be good.