Nifty Consolidates Near Key Support Levels: Will This Spark the Next Big Rally?
The Nifty 50 index continues to consolidate within a newly defined range, with no change in outlook, according to the latest technical note by CLSA’s Laurence Balanco. The index is currently trading between 24,337–24,432 on the lower end and 25,448–25,669 on the upper end, reflecting a pause in momentum following the breakout from the February–April double-bottom pattern.
Key Support Zone Identified
Balanco highlights a critical support zone just below the lower boundary of this range, which aligns with the 200-day moving average and the upper edge of the earlier basing pattern. This support area, spanning 23,708–24,157, is seen as pivotal for the market’s next directional move.
“As long as price action holds above this key support level, there remains a case to favour the upside,” Balanco noted, adding that the eventual resumption of the February–April pattern could still push the Nifty toward a measured target of 26,333.
Broader Market Narrative Remains Constructive
Earlier in June, CLSA was of the view that the NSE Nifty 50 may hit 26,333 or a record high in calendar year 2025. Meanwhile, In July, JPMorgan projected that the Nifty 50 could trade between 26,500 and 30,000 over the next six to nine months.
JPMorgan saw the first quarter as a transition phase, moving from underwhelming results to a more robust recovery, driven by a low base and improving economic momentum. While CLSA’s near-term view is more technical and range-bound, the broader market narrative remains constructive, provided key support levels are respected.
Nifty 50 Performance
Nifty 50 has risen 6.24% between April to Sept. 2025. Meanwhile, year to date the benchmark has gained 5.04%. However, on an annual basis the benchmark is down 1.64%.
Out of 50 analysts tracking the benchmark, 31 maintain a ‘buy’ rating, 19 recommend a ‘hold,’ and none suggest ‘sell,’ according to Bloomberg data. The average 12-month consensus price target implies an upside of 13.8%.
What This Means for Indian Investors
For Indian investors, the current consolidation in the Nifty 50 index presents an opportunity to reassess their investment strategies. With the broader market narrative remaining constructive, investors can look to capitalize on the potential upside in the market.
However, it is essential to keep in mind that the market is highly volatile, and investors should exercise caution when making investment decisions. It is recommended that investors consult with their financial advisors and conduct thorough research before investing in the market.
Conclusion
In conclusion, the Nifty 50 index is consolidating near key support levels, sparking hopes of a potential big rally. With the broader market narrative remaining constructive, Indian investors can look to capitalize on the potential upside in the market. However, it is essential to exercise caution and conduct thorough research before making investment decisions.
For more information on the Indian stock market and investment opportunities, please visit our investment opportunities page. You can also check out our market news section for the latest updates on the Indian stock market.
