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Quote on Morning market 23 August  2022 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

"The market mood has suddenly changed after the release of the Fed minutes which indicate steeper rate tightening than what the market had discounted. Now, the focus will be on what the Fed chief Powel will say at the Jackson Hole symposium on Friday. If he sounds less hawkish there can be a relief rally; otherwise the present drift will continue. The trend in US markets is hugely important for India since the correlation between the two markets is very high.

The sharp decline in India is also due to some profit taking by DIIs who have been sustained sellers in recent days. Profit booking is normal since the market had risen too fast (Nifty rallied 18% from the June lows) in 2 months.

Investors can now buy the dips in a calibrated manner. High quality financials, autos  and capital goods can bounce back sharply when the market trend turns."

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