Nifty's path higher remains intact, according to CLSA's technical analyst Laurence Balanco, who sees an upside of 26,333, but only if the critical support levels remain intact.
Balanco said that the index continues to oscillate near the 24,000 - 24,043 zone, defined by the 200-day moving average and upper boundary of the February-April double-bottom pattern.
This comes at a time when the Indian stock market has been wrought by cautious sentiment, especially amid geopolitical uncertainty and a thaw in trade talks with the United States.
Support, Resistance In Play
As per Laurence Balanco, the market has recently been consolidating, with 24,000 acting as a support level and the 24,905–25,088 range capping the upside. He believes a break above the 50-day moving average (DMA) within that band would provide an early signal of the index attempting to resume its advance.
What's The Upside Potential?
The 200-DMA remains the key marker for trend followers, Balanco adds. Should resistance give way, Balanco projects 26,333 as the next target for Nifty. Until then, it will be interesting to see if the index can hold its footing at current support levels or build momentum for the next leg of gains.
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