Nifty 50 closes above 25,000 mark this week: Where is it headed next?

Indian stock market: Indian stocks closed with impressive gains on Friday, with Nifty 50 settling above the 25,000 mark and Sensex closing above the 82,000 level. RBI’s dual boost—a 50 basis point reduction in the repo rate and a 100 basis point cut in the CRR— lifted hopes for stronger credit demand and a rebound in domestic economic growth, driving markets higher.

The Nifty 50 advanced 252 points, or 1.02%, to settle at 25,003, while the Sensex climbed 443 points, or 1%, closing at 82,188.

However, for the week, markets remained in a consolidation phase for the third straight week, except for the sharp rally seen on Friday. For the week, it posted a 1% rise, supported by positive domestic factors.

“The stock index has moved up sharply following a bazooka policy move by the RBI. It closed above the 25,000 mark after several sessions, indicating a surge in optimism among market participants. Typically, a rally followed by consolidation often results in an upward breakout, and this time too, we expect Nifty to break out above the recent consolidation range,” said Rupak De, Senior Technical Analyst at LKP Securities.

Where's Nifty 50 headed in the short term?

According to Ajit Mishra – SVP, Research, Religare Broking, the Nifty has once again approached the upper band of its prevailing consolidation range of 24,500–25,100.

A decisive breakout above 25,200 would mark the beginning of a fresh uptrend, with potential to gradually move toward the 25,600–25,800 zone, Mishra added. On the downside, the 24,400–24,600 range is expected to act as a strong support zone during any corrective phase, he believes.

Meanwhile, Rupak De of LKP Securities stated that the resistance is positioned at 25,150 on the higher side. "A move above this level — or even a sustained close above 25,000 — could set the stage for the index to rally towards 25350. On the downside, support is placed at 24,850. A breach below this level may weaken the current rally and trigger some profit booking," De added.

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