Bulls likely to take control in the run-up to Budget: Ashis Biswas of CapitalVia Global Research

A cluster of support zone supported by other technical evidence suggests 13,900 (Nifty 50 Index level) will act as a pivotal point for short to medium-term perspective, says Biswas.

Kshitij Anand

January 25, 2021 / 10:26 AM IST

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As the fundamental and long-term growth prospects remain intact owing to the improvement in consumer demand, we expect small and midcap stocks to do well in the coming future and bulls would be able to take control in the run-up to Budget or post the event, said Ashis Biswas, Head of Technical Research at CapitalVia Global Research, in an interview with Moneycontrol’s Kshitij Anand.

Edited excerpts:

Q) Last week was a historic period for the Indian market as benchmark index Sensex scaled 50,000-mark but profit booking at higher levels pushed the market in red/flat towards the close of the week. What led to the price action – is it profit taking or something is worrying investors?

This recovery is primarily because of improving consumer demand, followed by improvement in the business investment. Gradually, as investors become more knowledgeable about the situation related to the COVID-19 pandemic, the sentiment starts to turn positive.

The sharp V-shaped recovery is just an adjustment of the initial overreaction as the information was less at the time when the COVID-19 began to spread all over the world.

The market doesn’t seem overvalued in terms of the fundamentals, but we believe that the market sentiment is at the peak of optimism.

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