Mumbai, Oct. 6 -- The festival of lights appears to be setting the stage for the Indian stock markets to come alive. Market experts see a possible revival following a combination of fiscal and monetary stimuli, which could boost earnings growth, and rising hopes of a US trade deal sometime in November.

Subject to no fresh negative surprises from the US administration, the market is likely to test its June-end high of 25,669.30 from Friday's closing of 24,894.25-a 3% rally-by or before the Diwali week, which runs from 18-23 October, the experts said.

They cited a recent short squeeze in the options market where almost Rs.5.5 trillion worth of bearish bets were closed out in a matter of days, preceding the latest meeting of the Reserve Ba...