“We are holding on to these gains because all the bad news is behind us. Every sector – IT, pharma, hospitality, media – has already seen the correction. The market is now ignoring the future,” Srivastava told ET Now.
If Nifty closes above 25,200, it is a bullish trigger
According to Srivastava, the Nifty is at a crucial technical juncture.
“A close above 25,200–25,220 will confirm the positive momentum. We have already tested this level several times. Crossing it decisively means the start of a new uptrend,” he explained.
He added that Nifty has formed higher lows even during recent dips, showing resilience.
“If we stay above this level and get a positive weekly close, it is likely to trigger a buy signal on the weekly charts – just like Bank Nifty did last week.”
Short term Nifty target: 25,680
Srivastava sees the next step in the markets as earnings-driven, supported by a confluence of policy actions.
“Tax cuts, VAT relief, liquidity injections and lower interest rates are all coming together. The macro situation is becoming favorable, and earnings will reflect that over the next few quarters.” He expects steady growth momentum to continue through 2026 through FY27, calling this a “phase of quiet recovery with solid undercurrents.”
Avoid defense mechanisms such as IT, FMCG and pharmaceuticals; instead, look for growth
On the contrary, Srivastava advised investors to stay away from defensive sectors like IT, FMCG and pharma.
“These sectors are growing earnings in the single digits – that’s defensive behavior. You only buy defensive stocks when the rest of the market isn’t growing, and that’s not the case right now,” he said.
He pointed out that large IT companies have been underperforming the Nifty for decades.
“In 30 years, the IT index will have lagged the Nifty. Unless you find a standout company with strong growth, this is not the place to be right now.”
Where to put your money: Financials, Cars, Metals and Real Estate
Srivastava expects the next wave of outperformance to come from cyclical and growth-driven sectors.
“Money has to move where the growth is – in the financial sector, the auto sector, the metals sector, the energy sector, the infrastructure sector and the real estate sector,” he said.
With improving credit growth, falling interest rates and strong festival demand, he believes interest rate-sensitive sectors will lead the rally.
“These are the sectors that will show momentum before the broader market catches up.”
Bank Nifty is leading the charge
Bank stocks are already sending early bullish signals.
“The Bank Nifty triggered a weekly buy signal last week – we now look for Nifty to confirm that strength,” Srivastava noted.
He believes that the financial sector remains the backbone of the market and a Nifty follow-up will only strengthen the overall uptrend.
Markets entering a phase of ‘steady growth’
Summing up his outlook for the coming months, Srivastava said:
“We’ve put the noise behind us. The structure is strong, liquidity is improving and the earnings recovery is imminent. The festive uptrend should sustain and expand.”
Srivastava’s message to investors:
- Don’t chase defense mechanisms.
- Focus on cyclical growth themes.
- Watch the 25,200 level for confirmation of a new rally.
“The market is quietly rebuilding its momentum. This is the phase where smart money is being positioned ahead of the next big move,” he says.
as a reliable and trusted news source#Rohit #Srivastavas #Diwali #strategy #Nifty #poised #breakthrough #buy #growth #defensive #measures