India's equity benchmark Nifty 50 index has extended its recovery rally and is now facing resistance in the 24,300-24,400 zone, according to multinational brokerage firm CLSA. This level coincides with the 50‑day moving average and the lower end of the index's May–September 2025 trading range.
The Nifty ended 1.63% or 388.65 points higher at 24,231 on Wednesday. The index has closed higher in seven out of the nine trading sessions this month.
Technical analyst Laurence Balanco said the index staged a sharp rebound after forming a positive price and momentum divergence near the March lows. The recovery came just above a key support zone created by a double bottom formed in February and April, around 21,743-21,800.
A decisive move above the 24,300-24,400 resistance band could push the Nifty back into its second‑half 2025 trading range, he said. In that case, the next upside resistance is seen near the 200‑day moving average at around 25,130.
Beyond that, a stronger hurdle lies at the upper end of the broader 2024‑to‑date trading range, placed between 26,270 and 26,340.
However, until the index breaks clearly above the current resistance, Balanco expects the Nifty to consolidate at present levels. Such sideways movement would be consistent with the market absorbing the gains from the recent sharp rebound, he said.
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