Nifty Mid Caps To Offer 22% Upside, Says CLSA's Laurence Balanco

After predicting Nifty to reach 28,800 levels in 2026, CLSA technical analyst Laurence Balanco believes Nifty mid-cap stocks stocks are offering a major buy signal and could deliver gains of up to 22%.

In his latest Price Action note for CLSA, Balanco highlighted that the Nifty Midcap index has pulled back to a key confluence of support. This means the index is currently an attractive entry point for investors.

Balanco adds that the Nifty Midcap index recently tested the 13,500–13,510 zone. This has been identified by Balanco as a key critical zone as it aligns with the 50-day moving average (DMA) and the upper boundary of the consolidation pattern seen throughout 2024 and 2025.

Thursday’s intraday reversal at this level could signal selling exhaustion, which in turn means the correction in the index is likely over. This is what Balanco deduces from the recent price action.

CLSA anticipates the index will now resume its breakout from a massive "cup-and-handle" formation.

"Pattern continues to support an upside target of 16,800–16,820, implying a potential gain of roughly 22%," the note stated.

While Nifty Midcaps could be in a position to offer attractive upside, CLSA is also bullish on the benchmark Nifty 50.

Balanco himself had said earlier this month that the benchmark could reach 28,800 levels in 2026.

For this week, Balanco observed that Nifty 50 has established a solid support base between 25,275 and 25,318 following a recent corrective phase.

As long as the index holds above the broader support zone of 24,448–25,669, Balanco expects a breakout above the 2024 highs.

The brokerage firm has set a Nifty target of 26,700–26,800, based on the consolidation pattern formed between July and October.