Nifty Consolidation 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
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. Technical analysis of Nifty suggests that this support zone will play a crucial role in determining the index’s future trajectory.
“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. To learn more about Nifty technical analysis, visit our website.
Broader Market Narrative
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. For more information on JPMorgan’s view on Nifty, click here.
While CLSA’s near-term view is more technical and range-bound, the broader market narrative remains constructive, provided key support levels are respected. The Indian stock market has been volatile in recent times, but the overall trend remains positive.
Nifty 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%. For the latest Nifty live updates, visit our website.
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%. To know more about Nifty stock market analysis, click here.
Conclusion
In conclusion, the Nifty 50 index is consolidating near key support levels, and the technical outlook suggests that this could be a potential spark for the next big rally. However, it’s essential for investors to keep a close eye on the key support zone and the broader market narrative. For more information on Indian market news, visit our website.
