Global brokerage firm CLSA expects the Nifty 50 index to hit 26,333 by 2026, even though the market is currently facing a downward trend. The forecast comes from CLSA’s technical analyst, Laurence Balanco, who believes the target is possible if the index stays above key support levels.
At present, the Nifty has been falling after breaking below its 50-day moving average. It is now testing an important support zone between 24,000 and 24,043. This range is defined by the 200-day moving average and the upper limit of a “double bottom” pattern formed between February and April this year.
Balanco says that the upside target of 26,333 would mean a retest of the index’s 2024 highs, but only if prices remain above this support area. The Nifty had earlier touched its all-time high of 26,216 on September 26, before dropping to as low as 22,082.
One major challenge, according to CLSA, is that India’s stock market has been underperforming compared to China. Data from the India ETF to China ETF ratio shows a steady decline since breaking down from a “double top” pattern in 2024.
On Friday, the Nifty ended the day 0.95% lower at 24,363, extending its weekly losing streak to the longest in more than five years.
