Nifty outlook: The Nifty 50 could rally past 26,000 in the near term and potentially climb to 40,000 over the longer term, said Laurence Balanco, Technical Analyst at CLSA, who sees a major bullish breakout developing in Indian equities. He has identified 26,300 as the upper end of his immediate target range, while a move beyond that level could pave the way for a much larger rally towards 31,000-40,000.
Speaking to CNBC-TV18 on Monday, Balanco said a Nifty close above 25,500 by November-end would generate a long-term buy signal -- the first since August 2020.
His bullish outlook follows a sharp recovery in Indian equities, with the Nifty surging 8.58 percent last week and reclaiming the 25,000 mark for the first time since February 27. The index closed at 24,986.40 during Sunday's special Diwali trading session, slipping 0.18 percent after the preceding week's rally.
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Balanco expects the rally to extend beyond 26,000, with 26,300 emerging as an important technical threshold. A breakout above that level could strengthen the longer-term bullish outlook, opening the possibility of a move towards 31,000-40,000.