Indian equities have turned range-bound after a strong start to the week, with sectoral rotation evident across IT and other index heavyweights. Speaking
to ET Now, Rohit Srivastava, Founder of Strike Money Analytics and Indiacharts, outlines his technical view on the Nifty, Bank Nifty and key sectors ahead of the December expiry. Giving outlook for the stock market, Srivastava said, "Over the next couple of days, we should move towards 26,500 (for Nifty), which will be an important breakout level. This is based on the trendline connecting the last two tops formed between October and November. A decisive move above this level would help the index gain further momentum. Therefore, 26,500 is the level we should be heading towards, possibly before this month’s expiry."
IT Sector
On being asked about the IT Sector, Srivastava said, "From a slightly longer-term perspective, the IT sector has historically underperformed the broader markets, especially during growth cycles. Some mid-cap IT stocks have performed well in the past, but those moves are largely theme-based or stock-specific. Overall, the IT sector may still offer near-term upside from a trading perspective, but over the longer term, I would be a bit wary as an investor because the return outlook is not very attractive. Typically, earnings growth for large-cap IT stocks ranges between 8 per cent and 12 per cent, which is relatively modest.""That said, there is a trade currently playing out. The recent dip can still be viewed as a short-term buying opportunity, with the IT index potentially heading towards 40,000 or slightly higher. In that sense, there appears to be a short-term trading opportunity here," he added.
Top Pick for Santa Rally
On being asked about his top pick for Santa Rally, this Christmas, Srivastava said, "I would stay focused on the metals segment, as we are gradually seeing an environment where the dollar is weakening and commodity prices, especially copper and aluminium are continuing to rise. Stocks in this space, such as Hindalco and National Aluminium, which have already been performing well, are likely to continue doing so over the coming month."Stock Market
The benchmark Indian equity indices Sensex and Nifty closed in red territory on Wednesday, December 24, 2025, a day before the Christmas holiday on December 25. The BSE Sensex, after hitting an intraday low of 85,342.19, ended the session at 85,408.70, down 116.14 points or 0.14 per cent. The NSE Nifty50 settled at 26,142.10, down 35.05 points or 0.13 per cent. During the day Nifty50 swung between 26,236.40 and 26,123. Sensex and Nifty opened almost flat today. The BSE Sensex started at 85,533.11, while the Nifty 50 opened at 26,170.65.Despite briefly mirroring gains in Asian peers after stronger-than-expected US growth data, equity benchmarks stayed range-bound in the holiday-shortened session as IT stock losses and persistent foreign fund outflows limited the upside, even amid resilient domestic fundamentals.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
