Muthuselvaraj M, a technical analyst at Mirae Asset Sharekhan, projects the Nifty 50 index to reach 27,500 by the end of fiscal year 2026-27. This target represents a potential 23.15% upside from current trading levels. The analyst notes this optimistic view relies on the index holding above key support zones.
Nifty Forecast: Target and Support Levels
Muthuselvaraj highlighted a strong bullish pattern forming for the Nifty 50 since the COVID-19 lows of March 2020. Despite pressure from macroeconomic data, tariff wars, and geopolitical tensions in West Asia, the chart structure remains positive. The Nifty last closed at 22,331. He anticipates key support at the 22,500 level, with further support expected at 21,750 on the weekly chart. The Nifty ended fiscal year 2025-26 on a low note, dropping 5.05% or 1,188 points, largely influenced by an 11.3% fall in March. During FY26, the index reached a lifetime high of 26,373 on January 5, 2026, and a 52-week low of 21,744 on April 7, 2025.
Technical View: Nifty's Position Amid Volatility
The market has experienced significant turbulence, exacerbated by the US-Iran war, which caused the Nifty to shed 15.3% from its record peak. This decline has pushed the index below key moving averages. Currently, the Nifty trades nearly 12% below its 200-day moving average (200-DMA) of 25,369 and approximately 5.7% shy of its 20-day moving average (20-DMA) at 23,673. Analysts at Angel One note that the Nifty is approaching a significant higher time frame support zone between 22,000–21,700. This lower range coincides with the 200-week moving average, a level not tested since the COVID rally, marking it as structurally important. Muthuselvaraj indicated that the weekly Relative Strength Index (RSI) is exiting oversold territory, suggesting renewed buying interest.
MidCap and SmallCap Indices Outlook
Turning to broader indices, the Nifty MidCap 150 (last close: 19,431) has consolidated after falling 15% from its peak of 22,500, forming a higher bottom pattern. The index is testing its 100-week Exponential Moving Average (EMA) at 20,210, signaling a potential medium to long-term reversal toward 25,500, with limited downside risk. The weekly RSI for the MidCap index has also bottomed out and is moving out of oversold conditions. The Nifty SmallCap 100 (last close: 15,204) presents a different outlook, forming a lower top after peaking at 19,700 and consolidating in a triangle pattern following a more than 20% correction. Muthuselvaraj expects long-term buying opportunities toward 20,100, with key support at its 200-day DMA of 14,570. The SmallCap index is forecast to trade within a 14,500–20,100 range in FY27.