Nifty Next 50 Could Outperform Nifty 50 If It Breakouts Above This Level: SEBI RA Rajneesh Sharma

Even as frontline indices like the Nifty 50 hover near their highs, the Nifty Next 50 is quietly shaping up for what could be a standout performance in the coming weeks and months. According to SEBI-registered analyst Rajneesh Sharma, the Nifty Next 50 is building a structurally bullish setup that could set the stage for relative outperformance.

The price action, support zones, and momentum signals suggest this is an index worth watching closely, he added. 

Nifty Next 50: The Technical Edge

Sharma highlighted that the Nifty Next 50 has broken out of a falling wedge pattern, a classic bullish reversal structure. Historically, these patterns often lead to trend reversals and fresh upswings. 

The index is now testing a critical resistance level at 70,000, a mark that it has attempted to surpass but hasn’t yet achieved a decisive weekly close. He noted that a confirmed breakout above this level could spark the next leg up to targets like 72,000 and 74,000. 

Sharma pegged the ascending trendline support near 67,500; this level has held firm since the breakout. At the same time, the 64,300–64,500 zone is a long-standing support area from previous price reactions. 

The Relative Strength Index (RSI) is currently at 53, indicating mild bullish momentum. However, there’s a visible bearish divergence: while the price is pushing higher, the RSI is not confirming with new highs. This indicates a potential short-term pause or pullback is likely before further direction unfolds.

Sharma flagged two caution zones when it came to the Nifty Next 50. 70,000 remains a strong hurdle. Without a convincing weekly breakout, this level could cap further upside. Additionally, if it dips below the 67,500 trendline support, it could see a deeper correction toward 64,300. And a breakdown below this could drag the index toward 60,000. 

Sharma concluded that the Nifty Next 50 is approaching an inflection point. If it clears the 70,000 barrier, it could outperform broader indices like the Nifty 50 in the short to medium term. On the flip side, failure to hold the key supports could stall the current bullish structure. This situation calls for a "watch-and-react" approach. Instead of preempting the market, focus on tracking key levels closely and allow the market to confirm its next move.

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