Market Trends     

Published: September 15, 2025
Updated: September 15, 2025

Index patterns that prophesy gains: Nifty indices poised to go north

As we analyze current market conditions, several key indices in the Indian equity markets are displaying strong, bullish price action on their weekly charts, signalling a potential for sustained upside momentum. This technical analysis aims to provide a strategic outlook for the Nifty Smallcap 250 Index, Midcap 150 Index, Nifty 500 Index and the PSU Banks Index. By focusing on significant price patterns and trends, we will delve into the underlying technical structures that suggest that these indices could be poised for further gains in the coming weeks.

Nifty, as the benchmark index, continues to hold a crucial position in shaping market sentiment. Alongside, the Smallcap 250 and Midcap 150 indices are showing signs of robust recovery and accumulation, supported by strong sectoral rotations. Meanwhile, the Nifty 500 Index, representing broader market participation, is also demonstrating patterns indicative of broader market strength. The PSU Banks Index, often a barometer for the performance of publicsector financial stocks, is forming a strong base, suggesting potential Prakash Chandresh Padalia (CA) breakout opportunities.

THE ROADMAP

In this report, we explore the technical set-up and price action in detail to arrive at bullish targets for each of these indices, providing a roadmap for traders and investors looking to capitalize on the current market conditions. So, here goes:

  • 1. Smallcap 250 Index weekly chart:
    The Smallcap 250 Index had seen quite a rally right through 2023-24. However, it experienced a pause in the uptrend in September 2024 and witnessed a deep correction. However, it has been robust ever since the bottom that was made in April 2025. The weekly chart is forming a Head-and- Shoulders pattern which is yet to break out. The target of the pattern comes to 24,500, which is 40% away from the current level. Looks like GST rate cuts are going to be a boon for small cap stocks
  • 2. Midcap 150 Index weekly chart:
    Another index that is forming a Head-and- Shoulders pattern is the Midcap 150 Index. Party time is about to begin for midcap stocks as we gear for a breakout. The target of the pattern is 28,000. A whopping 28% positive return is our expectation for this index. Time for a higher allocation!!
  • 3. Nifty 500 Index weekly chart:
    Yet another Head-and-Shoulders pattern on the weekly chart. This time it is the Nifty 500 Index. The top 500 companies based on free float market capitalization are ready to take centre-stage. Even this index is expected to go north by 24%. All the pain of the last one year is about to be redeemed.
  • 4. Nifty50 weekly chart:
    Time for the mother index – Nifty50! Yes, you are seeing that correctly… A target of 30,000 in the next 1-1.5 years. That is the magic of the Cup-and-Handle pattern. It acts like a pause in a bull market. Honestly, looking at the past one year’s slack period and the expected consumption boost, 19-20% from the current level is quite possible.

SAME PATTERN

Now, the question is: Has this pattern played out in Nifty before ? YES!! Have a look – The entire bull run of year 2023-24 was because of this Cup-and-Handle pattern. We are going to witness the same kind of run again… brace yourself!

  • 5. Time for a bonanza:
    The sector of the year – PSU Banks. This has been the most hated sector of the 2008-2020 period. However, what a turnaround we have seen… all thanks to the government’s efforts to bring the PSU banks back! The expected return is 30% from the current level of 7,316. Grab this one, because there are a lot of structural changes in this sector. Buy now and thank us later!

(The writer Mr. Prakash Padalia, a chartered accountant is a knowledgeable market analyst and an expert in technical)

September 30, 2025 - Combined Issue

Industry Review

VOL XVI - 22
September 16-30, 2025

Formerly Fortune India Managing Editor Deven Malkan Assistant Editor A.K. Batha President Bhupendra Shah Circulation Executive Warren Sequeira Art Director Prakash S. Acharekar Graphic Designer Madhukar Thakur Investment Analysis CI Research Bureau Anvicon Research DD Research Bureau Manager (Special Projects) Bhagwan Bhosale Editorial Associates New Delhi Ranjana Arora Bureau Chief Kolkata Anirbahn Chawdhory Gujarat Pranav Brahmbhatt Bureau Cheif Mobile: 098251-49108 Bangalore Jaya Padmanabhan Bureau Chief Chennai S Gururajan Bureau Chief (Tamil Nadu) Ludhiana Ajitkumar Vijh Bhubaneshwar Braja Bandhu Behera

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