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Quote on Morning market 17 October  2022 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

"Rallies triggered by market positioning will be temporary because there won’t be any follow-on fundamental support for the rally. This trend played out in the US market last Friday with sharp cuts in major indices. There are no major triggers to take the mother market much higher at least in the near-term. There are no major triggers for a crash also since almost all negative factors are known to the market. Such an uncertain scenario provides opportunities for long-term investors to slowly accumulate high quality stocks showing improving prospects.

After a decent set of Q2 numbers from the leading IT majors, the Q2 numbers for banking also have begun well with very good results from HDFC bank. The improvement in Net Interest Margin and impressive loan growth augur well for this banking blue chip.Even though strong dollar and high bond yields in US may nudge FIIs to sell, strong flows into domestic mutual funds and optimistic retail investors can provide the counter to FII selling providing some stability to the market."

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