Nifty may surge to 27,500 over next few months: Rahul Sharma

Speaking to ET Now, market expert Rahul Sharma said, “The market is bracing for a breakout above 26,100, and largecaps should regain momentum. A US trade deal could happen anytime, prompting short covering and pushing Nifty toward 26,500. Our view is to buy on dips. We saw this happen recently when Nifty dipped to 25,900 but quickly recovered. Sectors hit by tariffs, like IT, electronics manufacturing, and gems & jewellery, could see renewed momentum. Largecaps and US-export-focused stocks such as HDFC Bank, Reliance, and Siemens Energy are likely to benefit immediately.”

On the possibility of a Santa rally, Sharma added: “Things are looking positive. US markets are slowing, so profits there could flow into emerging markets, and India remains a top pick. With Q3 earnings coming in January, markets may start discounting them in December. A Santa rally is possible, and Nifty could reach 27,500. Significant shorts still exist, and when FIIs cover them, the rally could accelerate. In the short term, the US trade deal, a potential RBI rate cut, and Q3 earnings could boost sentiment. Over the next two to three months, markets should remain positive.”
Experts advise investors to focus on largecap stocks and companies with US exposure, as these are likely to benefit immediately. With Nifty potentially reaching 26,500 in the near term and 27,500 by year-end, market participants are cautiously optimistic, keeping an eye on both global trade dynamics and domestic earnings announcements.