Nifty outlook remains constructive as analysts foresee potential rally towards 25,400 and beyond

Despite recent consolidation, technical analysts remain optimistic about the Nifty’s ability to extend its recovery, with some predicting a sharp rally driven by falling crude oil prices and easing inflation, potentially reaching 29,000-30,000 by September 2026.

Last week’s sharp gap higher in the Nifty was followed by a narrow trading band, but technical analysts said the broader bias remains constructive. Businessline’s latest outlook said the index has room to hold above near-term support and extend its recovery in the weeks ahead, with initial upside seen in the 24,750 to 24,850 zone and a longer-range target around 25,400. The downside cushion is placed in the 24,500 to 24,400 area.

That view broadly matches other market commentary in early August, when traders were watching whether the Nifty could clear the 24,200 to 24,300 band and then challenge 24,500 as the next major hurdle. A separate forecast from Traders Union was more restrained, pointing to a modest dip in August before a gradual recovery through the rest of the year. By contrast, chart analyst Jai Bala told the Economic Times that the index could rally far more sharply, arguing that a fall in crude oil prices would ease inflation and geopolitical pressure and could help propel the Nifty to 29,000-30,000 by August or September 2026.

Banking shares are also being watched closely. Businessline said the Nifty Bank index has support at 57,500 and 57,480, with the next upside levels at 58,500 and then 59,000 or higher. In a related technical note, traders have been tracking similar support-and-resistance zones in the Nifty Bank ETF, while Moneycontrol reported that the broader market mood in early August was being shaped by expectations of softer crude prices. Taken together, the signals suggest a market that is consolidating rather than breaking down, with bulls still in control so long as key supports hold.