Where is the Nifty headed next? Top CLSA chartist answers

Laurence Balanco, the CLSA chartist, believes that the current Nifty price action from the 2024 peak is closely resembling the 2021-2023 consolidation (cup-and-handle) formation, which ultimately paved the way for a 40% jump in 2023-2024.However, for that to happen, the Nifty needs to first hold its key support zone of 23,700 – 23,800 on the downside. The index is currently around 1,000 points away from those levels.

“This week’s weakness has taken the Nifty back towards support provided by the early February lows that coincides with the May/June August/September 2025 lows at the 24,300 – 24,500 area,” Balanco wrote.
On the upside, the CLSA chartist said that it will take a break above the 26,277 – 26,341 zone for the Nifty to first support an initial target of 28,700 – 28,800 and that breakout could also have a scope to take the index to levels of 31,600 – 31,700 in the long-term.Balanco expects the Nifty to continue trading in this broad 2,000-point range, from 24,500 – 26,300 in the near-term.

“Clearly a break below the 23,700-23,800 support zone would be a negative event as such a move would negate the outline of the cup-and-handle consolidation pattern,” Balanco added.

The Nifty 50 index is down 1.6% so far in this truncated week and is set to decline in three out of the last four trading sessions, as the ongoing US-Iran war in West Asia, and the subsequent surge in oil prices have had a negative impact on market sentiment.

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