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Hans India
2 days ago
- Business
- Hans India
Will Nifty 50's breakout above 25,000 drive a rally to 25,300?
The NSE Nifty 50 index reclaimed the 25,000 mark on Wednesday, closing at 25,141.40—its highest level since October 14. This move follows a tight three-day consolidation between 25,055 and 25,222, reflecting a brief pause in market momentum. According to analysts, the breakout signals a renewed bullish trend. 'The market was in a breather phase post-rally, but this breakout opens up room for further upside,' said Sudeep Shah of SBICAP Securities. However, Shah also noted that the Relative Strength Index (RSI) remains range-bound, suggesting limited short-term strength. Akshay Chinchalkar of Axis Securities emphasized the significance of the move, calling it a breakout from a bullish consolidation with an upside target of 25,800. He pointed to the strong performance of small- and mid-cap stocks as evidence of growing investor risk appetite. External factors are also aligning favorably. Easing US dollar strength, stabilizing interest rates, and reduced volatility are boosting investor sentiment, particularly with positive cues around India-US trade talks. Of the 50 Nifty stocks, 28 advanced while 22 declined. The index touched an intraday high of 25,222.4, reinforcing the breakout narrative. Bajaj Broking projects a further move towards 25,300 and 25,500 in the near term. 'Dips should be seen as buying opportunities with strong support at 24,900–25,000—the recent breakout zone,' the firm noted. Market watchers now eye 25,300 as the next major resistance level. A decisive move beyond 25,222 could spark further gains, while a fall below 25,055 may trigger short-term profit booking.
Mint
2 days ago
- Business
- Mint
NSE Nifty 50 reclaims 25,000, next hurdle at 25,300
The Nifty 50 index, which had been hovering just below the 25,000 mark, surpassed the key milestone on Wednesday and closed at 25,141—a level last seen on 14 October. Over the past three trading sessions, the index had been consolidating within a narrow range of 25,055 to 25,222, signalling a pause in momentum and a lack of clear conviction from both bulls and bears, according to market experts. Now that it has broken its consolidation phase, experts say the index is headed for an upward move. 'The consolidation suggests that the market is currently taking a breather after a recent rally, awaiting fresh triggers for the next leg of the move,' said Sudeep Shah, deputy vice president and head of technical & derivatives research at SBICAP Securities. The Relative Strength Index (RSI) on the daily timeframe is also showing signs of exhaustion, as it remains range-bound and lacks further upside traction, which indicates reduced strength in the short term, despite the index holding at higher levels, he said. Akshay Chinchalkar, head of research at Axis Securities, said that Nifty has essentially broken out of a bullish consolidation pattern, which targets 25,800. 'The view is supported by the more risky pockets–smallcaps and midcaps–outperforming, which is a sign of increased risk appetite from investors.' Chinchalkar said the US dollar, US interest rates and volatility are currently serving as tailwinds, further feeding into investor optimism that India-US trade negotiations will be struck without any downside surprises. The Nifty 50 index closed 0.15% up at 25,141.40 after touching an intraday high of 25,222.4 on Wednesday. Within the index, 28 stocks advanced, while 22 declined. Shah said that a breakout above the 25,222 level could reignite bullish momentum and pave the way for further gains towards 25,500 level, while a dip below 25,055 may lead to mild profit booking. The Nifty 50 index could head higher towards an immediate hurdle of 25,300 and then towards 25,500 in the coming weeks, said Bajaj Broking in a note. 'Dips in the coming sessions should be used as a buying opportunity with immediate short-term support placed at 24,900-25,000 levels being the recent breakout area.' The top sectoral gainers on Wednesday were the Nifty IT index (1.26%), Nifty Pharma index (0.5%) and the Nifty Energy index (0.3%).
