Nifty can rally another 900 points if it breaks decisively above this level, CLSA chartist projects

Laurence Balanco of CLSA expects the Nifty to rally another 900 points from current levels, provided it breaks above a key level.In his latest note on Thursday, April 16, Balanco said that the recovery rally on the Nifty is now testing the overhead resistance at 24,300 – 24,400 levels, an area defined by the 50-Day Moving Average.

The Nifty 50 index has rallied over 2,000 points from its Iran war lows of 22,182 at the start of the month with largecap private banking stocks leading the recovery. Balanco wrote that the index had formed a price / momentum divergence into those lower levels, from which it has seen a sharp rebound.
“A decisive move above this resistance (24,300 – 24,400) would place the Nifty 50 back into the H2 2025 trading range,” Balanco wrote, adding that the next upside hurdle for the index would be at 25,130, which coincides with the 200-Day Moving Average (200-DMA).The 25,130 level is an upmove of nearly 900 points for the Nifty 50 index from Wednesday’s closing level of 24,210.

The Nifty 50 index has gained in seven out of the nine trading sessions so far in April and five of those sessions has seen the index gain at least 1% or more.