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Quote On Morning Market 24 May 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

The US debt ceiling impasse continues to affect markets. Since failure to reach a resolution will have catastrophic consequences for the global economy and markets, a resolution of the crisis at the eleventh hour is the most likely scenario. But markets will be on tender hooks till then.
A global risk-on and rally is the most likely scenario after the resolution of the impasse.

Nifty is less than 2% away from record highs and institutional-both FII and DII- support and retail buying can help the Nifty reach new highs. Declining inflation and a possible rate cut by the RBI by end 2023 are clear positives for the market.

The near-term scenario is uncertain but for long-term investors buying high conviction stocks on declines will fetch decent returns.

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