The Nifty 50 index breached the significant 25,000 milestone on Wednesday, ending the session at 25,141.40—its highest level since October 14. This comes after several sessions of tight consolidation within a narrow band of 25,055 to 25,222, indicating indecision in market sentiment. The breakout signals renewed bullish momentum, according to analysts.
Market experts note that the recent consolidation reflected a period of pause following the previous rally, as investors waited for new cues. Sudeep Shah, Deputy Vice President and Head of Technical & Derivatives Research at SBICAP Securities, remarked that the market was “taking a breather,” but the latest move suggests that the next leg of the rally could now be underway.
Technical indicators, however, present a mixed picture. Shah pointed out that the Relative Strength Index (RSI) remains range-bound on the daily chart, signaling short-term exhaustion despite the index holding firm above key levels.
Akshay Chinchalkar, Head of Research at Axis Securities, believes the Nifty has broken out of a bullish consolidation pattern, which sets the stage for a potential upward move toward 25,800. He added that stronger performance from small- and mid-cap stocks indicates growing investor risk appetite, further supported by favorable external factors such as stable U.S. interest rates, a softening dollar, and low market volatility. Optimism around India-U.S. trade talks has also contributed to the positive sentiment.
During Wednesday’s session, the index recorded a modest gain of 0.15%, touching an intraday high of 25,222.40. Of the 50 constituent stocks, 28 advanced while 22 declined.
Looking ahead, Shah noted that a decisive move above 25,222 could trigger further bullish momentum, potentially taking the index towards the 25,500 mark. On the flip side, a drop below 25,055 could lead to some profit-taking.
In a research note, Bajaj Broking said the Nifty 50 may face immediate resistance near 25,300 and then at 25,500 in the near term. The brokerage advised investors to treat any dips as buying opportunities, identifying support in the 24,900–25,000 zone, which marks the recent breakout level.
Sector-wise, the Nifty IT index led gains with a 1.26% rise, followed by the Pharma and Energy indices, which climbed 0.5% and 0.3%, respectively.
