The stock market has experienced a remarkable surge lately, with the Nifty 50 achieving its most impressive weekly performance in four years. As investors eagerly watch the index, the pressing question is whether it can swiftly surpass the 24,000 mark. Market analysts are optimistic, noting that robust institutional buying and favorable global trends are propelling this upward momentum.

Nifty’s Next Milestone: Climbing Higher

Market experts are generally bullish about the short-term outlook for the Nifty 50. However, they caution that profit-taking could occur as the index approaches higher levels. Many analysts advocate for a strategy of buying during dips and selling during rallies. According to Amol Athawale, Vice President of Technical Research at Kotak Securities, “In the upcoming days, support levels at 23,100/75,800 and the 50-day SMA around 23,000/75,400 will be crucial. Meanwhile, resistance is expected between 23,500-23,700/77,400-78,000. Should the index dip below 23,000/75,400, market sentiment may shift, prompting traders to consider exiting their long positions.”

Anticipating Pullbacks: Key Levels to Watch

Technical analysis indicates strong momentum, particularly with the Nifty forming a bullish engulfing candle on the weekly chart. Aditya Gaggar, Director at Progressive Shares, commented, “The Nifty 50 has concluded its corrective phase, showcasing a robust bullish candle that has broken out of a Falling Wedge Formation, indicating a positive trend shift. However, the hourly chart reveals overbought conditions, hinting at a potential price correction. Immediate resistance stands at 23,560, while support has moved higher to 23,200.”

Similarly, Om Mehra from SAMCO Securities noted, “The 9 EMA is nearing a bullish crossover with the 50 EMA, signaling potential upward momentum. The daily RSI remains above 65, which is typically indicative of sustained strength and bullish sentiment.”

A Market Recap: Five Days of Gains

The Indian stock market concluded the week on a high note, marking its fifth consecutive day of gains. The Nifty 50 rose by 0.69% to finish at 23,350, while the Sensex climbed 0.73%, closing at 76,905.51 on Friday. This remarkable rally resulted in the Nifty achieving its largest weekly increase in over four years, soaring nearly 4.2%.

Looking Ahead: What’s Next for Investors?

As the Nifty continues to establish a pattern of higher highs and higher lows—an unmistakable sign of an uptrend—analysts speculate that a brief pullback could actually be beneficial before embarking on the next bullish phase. According to Mehra, “Support levels are positioned at 23,240 and 23,180, which could provide a safety net if there’s any near-term retracement.”

With the market exhibiting solid upward momentum, investors would do well to stay informed and prepared for the potential fluctuations ahead.

For further insights, check out our article on Stocks to Watch and stay updated with the latest market trends.