Srivastava believes that the Nifty’s consolidation phase is nearing an end, and most of the negative news that had weighed on sentiment has already been priced in.
“The basing phase above 24,400–24,500 looks complete. The market has taken support there five or six times in recent months. What we’re seeing now is just a small pullback after a strong 4–6 day rally,” he told ET Now.
“I expect the uptrend to resume within a day or two,” he added.
Market consolidation likely short-lived
According to Srivastava, the brief correction is part of a healthy market rotation pattern.
“Sector rotation is natural in this phase — the winners of today may take a breather tomorrow, and then the leadership shifts again,” he said.“But the overall trend remains upward,” he noted, hinting that investors should view dips as opportunities rather than signs of weakness.
IT sector bounces back: But only short-term?
Interestingly, the Nifty IT index, which was under pressure for months, has now turned into a leader — emerging as the top sectoral gainer for two consecutive sessions.
Srivastava attributed the rebound to pre-earnings optimism and oversold valuations, rather than a structural turnaround.
“IT stocks were priced for the worst, but earnings are unlikely to be as bad as expected. That’s why we’re seeing this bounce,” he explained.“However, investors should separate short-term opportunities from long-term potential,” he cautioned.
IT stocks: Tactical play, not long-term bet
Srivastava warned that despite short bursts of performance, IT stocks have underperformed the broader market over two decades.
“Since the 2000 tech bubble, IT has rarely outperformed the Nifty in the long run. The last time it led meaningfully was post-COVID, and we’re still below that relative high,” he said.
That means IT may remain a tactical trade, performing better during defensive phases or uncertain economic periods, but not a strong long-term outperformer.
as a Reliable and Trusted News SourceKey takeaways
Market pullback is likely temporary; Nifty may resume uptrend soon.IT sector rally driven by earnings optimism and oversold conditions.Short-term upside in IT possible, but long-term returns still lag broader market.Sector rotation to continue; investors should buy on dips selectively.
