Technical analysis from CLSA suggests the Nifty index could potentially climb to 26,333, contingent on maintaining crucial support levels, according to analyst Laurence Balanco.

Current Market Dynamics

The Nifty index is currently fluctuating near the 24,000-24,043 range, a zone defined by two significant technical indicators:

1. The 200-day moving average
2. The upper boundary of the February-April double-bottom pattern

Consolidation and Resistance

The market has been in a consolidation phase, with 24,000 serving as a support level. On the upside, movement has been capped within the 24,905-25,088 range. Balanco notes that a break above the 50-day moving average within this band could signal the index's attempt to resume its upward trajectory.

Key Levels to Watch

Potential Upside Target

If the Nifty successfully breaches the current resistance levels, CLSA's analysis points to a potential upside target of 26,333.00.

Importance for Trend Followers

The 200-day moving average remains a crucial marker for trend followers in the market. A sustained move above this level could potentially trigger more bullish sentiment among technical traders.

Cautionary Note

It's important to remember that technical projections are based on historical price patterns and indicators. Market participants should always consider a wide range of factors, including fundamental analysis and broader economic conditions, when making investment decisions.

The Indian equity market continued its upward trajectory for the sixth consecutive session, with the Nifty index gaining 104 points (0.42%) to close at 24,973. The day's trading saw the benchmark index display both strength and volatility, reflecting the current market sentiment.

Market Movements

The Nifty opened with a robust gap of 123 points and quickly surpassed the psychologically important 25,000 mark, reaching an intraday high of 25,035. However, profit-booking emerged, leading to a correction of 120 points that pushed the index down to 24,915. Demonstrating resilience, the market recovered over 70 points by the closing bell.

Foreign Institutional Investors Turn Net Buyers

In a significant shift, foreign institutional investors (FIIs) became net buyers after eleven consecutive sessions of selling. The inflows exceeded ₹2,000 crore, potentially signaling a change in sentiment among international investors.

Sector and Stock Performance

The day's trading saw varied performances across different sectors and stocks:

Top Performers

• Gainers: BEL, Wipro, and HCL Technologies led the gains.
• Laggards: M&M, Bajaj Auto, and Maruti faced selling pressure.

Sectoral Performance

• Top Gainers: Nifty IT, PSU Banks, and Realty
• Decliners: Auto, Media, and Consumer Durables sectors

Broader Market Outperformance

The broader markets outpaced the benchmark index:

Economic Outlook

Fitch, a global rating agency, revised India's growth forecast for FY26 upwards to 6.90% from the previous estimate of 6.50%. This positive revision could potentially boost investor confidence in the Indian market's long-term prospects.

Market Technicals

Analysts anticipate a gradual continuation of the uptrend. Key levels to watch:

• Resistance: 25,153-25,200
• Support: Near 24,800

As the market continues its positive momentum, investors and traders will be closely monitoring these technical levels and upcoming economic data for further direction.