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Quote on Morning market 29 July  2022 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

"Markets have ignored the technical recession in the US - GDP contracting for 2 consecutive quarters- and are pinning more faith on the resilience of the economy as reflected in very low unemployment of 3.6% and job vacancies at historical highs. Also, the Fed chief's observations yesterday indicate that the Fed is likely to slow down rate hikes after one more large hike in September.

In India the big positive for the market is the FIIs reducing their selling substantially and even turning buyers for 8 days this month.

The expected outperformance of financials has played out well. Q1 results indicate improving prospects for this segment. The short covering bounce in IT may continue in the near-term.

If the ongoing market rally continues for some more time there is the danger of the market moving into overbought territory with the risk of vulnerability to correction."

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