Morning Market Quote : The near-term trend of the market is mildly bullish Says Dr. V K Vijayakumar, Geojit Financial Services
Below the Quote on Market by Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
The near-term trend of the market is mildly bullish. The leadership for the rally which has taken the Nifty up by 3.2% during the last fortnight has come from the leading banks, which are even now fairly valued, and have the potential to take the market forward. The return of the FIIs is another positive which augurs well for the largecaps. The ongoing rally can take the Nifty Bank to new record highs, lifting the Nifty further up. However, the sustainability of the rally is doubtful since the slowing Indian economy will constrain the bulls, and the FIIs may again turn sellers since there is no valuation comfort in the market. The momentum in the US market is robust and in such a scenario the bulls cannot be overly optimistic. Rate cut by the Fed this month is now a foregone conclusion and this will keep the equity markets positive. The medium to long-term trend of the market is uncertain.
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