Nifty may rise to 27,500 in coming months: Rahul Sharma

Indian stock markets are showing signs of optimism with Nifty trading above 26,100 amid hopes of a possible US trade deal and improving investor sentiment. Speaking to ET Now, market expert Rahul Sharma said: “The market is gearing up for a break above 26,100, and largecaps should regain momentum. A US trade deal could happen anytime, creating short covering and pushing Nifty towards 26,500. Our view is to buy on dips. We saw this happening recently when Nifty fell to 25,900 but recovered quickly. Tariff-hit sectors like IT, electronics manufacturing and gems and jewelery would see a see renewed momentum. Largecaps and US export-oriented stocks such as HDFC Bank, Reliance and Siemens Energy are likely to benefit immediately.”

On the possibility of a Christmas gathering, Sharma added: “It looks positive. US markets are slowing, so gains could flow to emerging markets there, and India remains a top pick. With Q3 earnings due in January, markets may start discounting them in December. A Santa rally is possible and Nifty could touch 27,500. Significant short positions still exist, and if the FIIs cover them, the rally could accelerate. In the short term, the US trade deal, a possible RBI rate cut and third quarter earnings could boost sentiment for months, markets should remain positive.”

Experts advise investors to focus on large-cap stocks and companies with US exposure as they are likely to benefit immediately. With Nifty possibly touching 26,500 in the near term and 27,500 by year-end, market participants are cautiously optimistic, keeping an eye on global trade dynamics as well as domestic earnings announcements.