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Quote On Morning Market 16 February 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

Two factors have contributed to the ongoing mild rally in the market. One, the global market construct is favourable and, two, the bulls have been emboldened by the apparent change in FII strategy from selling to buying. This favourable backdrop can sustain the rally but breaking the 18200 Nifty resistance would be tough.

Incoming data indicates that the possibility of a soft landing for the US economy is improving. After the blockbuster jobs data, the latest January US retail sales data also is impressive, indicating a resilient economy. Therefore, the US markets are discounting a soft landing for the U S economy in contrast to a hard landing feared earlier.

In India, the big positive is the FIIs turning buyers during the last four days. They might again sell at higher levels, but it appears that the sustained selling from early January till 9th February is over. IT, leading banks, capital goods and RIL may help sustain the rally in the near-term but not for long.

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