Ajit Mishra Sees Nifty at 25,500–25,750 After Market Consolidation

The Indian stock market’s recent consolidation is a normal pause after a sharp rally, according to Ajit Mishra, Senior Vice President – Research at Religare Broking.

Speaking in Delhi, Mishra said the Nifty had witnessed an almost vertical rise of roughly 3,000 points, making some consolidation and profit-taking natural after such a strong move.

He said the broader structure of the rally remained constructive, with most major sectors participating on a rotational basis.

Nifty Has Rallied Sharply

The benchmark Nifty 50 has recorded a strong recovery over recent sessions.

On November 12, the index closed at 25,299.35, up 0.18% for the day, after gaining roughly 10% during November.

Religare Broking had also noted that the Nifty crossed 25,400 during the November 11 session before closing at 25,255.05, up 0.84%.

Mishra Calls Consolidation Healthy

Mishra said the market should not be expected to move upward continuously after such a steep rally.

He described short periods of sideways trading or profit-booking as healthy because they allow the market to absorb gains before the next directional move.

Religare Broking’s recent market commentary similarly said that some consolidation following the sharp rally would be constructive.

Most Sectors Participating in Rally

According to Mishra, sectoral participation has been broad.

He said most major sectors were contributing on a rotational basis, with IT remaining one of the notable weaker pockets.

Recent sessions have seen strength in banking, auto, FMCG and other cyclical sectors, while IT and some defensive segments have periodically lagged.

Banking Index Near Record High

Mishra highlighted banking stocks as one of the strongest contributors to the rally.

Religare Broking’s recent technical outlook projected the Bank Nifty toward 60,000, followed by a potential move toward its record-high zone around 61,500.

He said sustained strength in banking would remain important for confirming the broader market trend.

Foreign Investors Return Aggressively

One of the biggest supports for the market has been renewed foreign institutional buying.

Reuters reported that overseas investors had bought approximately $6.43 billion of Indian equities in November, their largest monthly inflow in more than two years.

Earlier in the week, November FII inflows had already crossed ₹66,000 crore.

Mishra said the scale of recent buying indicated renewed foreign investor interest in Indian equities.

FII Buying Supports Market Sentiment

Foreign institutional investors had earlier been cautious toward Indian stocks, but recent changes in global conditions have improved sentiment.

Key supportive factors include:

• Lower crude oil prices from recent peaks

• Improved relative valuations

• Strong domestic demand

• Expectations of earnings recovery

• Reduced enthusiasm for some global AI-linked stocks

• Renewed preference for emerging markets

These factors have helped India attract significant foreign capital during November.

Global Markets Could Still Trigger Volatility

Mishra cautioned that international developments could still create short-term volatility.

Global equity weakness, crude oil movements, geopolitical developments and changes in foreign risk appetite could periodically affect Indian markets.

Religare Broking has therefore continued to recommend a selective approach rather than aggressively chasing stocks after sharp rallies.

Nifty Target Seen at 25,500–25,750

Mishra said the next important upside zone for the Nifty was around 25,500 to 25,750.

Religare Broking’s November 11 market outlook also identified 25,500–25,750 as the next target zone following the recent breakout.

The brokerage sees the 24,800–25,000 zone as a potential support area during any pullback.

Strong Support Around 24,800–25,000

From a technical perspective, Mishra has said that corrections toward 24,800–25,000 could offer support if the broader positive structure remains intact.

Religare Broking has identified 24,600 as an important level that would weaken its positive technical view if decisively breached.

Midcaps and Smallcaps Also Participate

The rally has not been limited to large-cap stocks.

On November 11, the Nifty Midcap index gained around 0.8%, while the Smallcap index rose approximately 1.6%.

That broader participation has been interpreted by analysts as evidence of improving market breadth.

Mishra Advises Selective Approach

Despite the positive trend, Mishra has cautioned investors against chasing stocks after extended moves.

His recent strategy has been to use dips or consolidation phases to consider fundamentally strong companies showing relative strength.

Religare Broking has highlighted themes including banking, capital markets, oil and gas, infrastructure, auto and selected defensive sectors.

Current Pause Seen as Part of Broader Uptrend

The Nifty 25500 25750 target view is therefore based on Mishra’s assessment that the market is consolidating rather than reversing its recent trend.

He said sector rotation, strong foreign inflows and banking strength continue to support the broader structure, although global developments may create intermittent volatility.

The 25,500–25,750 zone now remains the key near-term upside area being watched by Religare Broking.