The Nifty 50 is only 1.5% away from its record high. This time, can the bulls charge through?

The Nifty 50 index has experienced a strong rally and is very close to its record high as investor confidence in the Indian stock market has returned. Strong earnings, foreign investments, and government programs to increase consumption all contribute to the upward trend.

As investor confidence seems to have returned to domestic stocks, the Indian stock market has had a sustained bull run in recent sessions. Frontline indices have had strong rallies and have approached their record highs as a result of a great start to the September quarter earnings, alleviating valuation worries, and progress in the trade agreement between the US and India.

Even throughout Tuesday's special Diwali session, the Nifty 50 continued to rise, continuing its winning streak for the sixth straight day and yielding a cumulative return of almost 3%. Additionally, the rally caused the index to rise 5.11% so far in October, the highest monthly increase since March 2025.

The Nifty is about to reach a record high.
The index is currently at 25,868 and is only 1.55% away from reaching its all-time high of ₹26,277, which was set in September 2024, thanks to the most recent rise. The index had previously made several attempts to cross this level but was unable to do so due to increased volatility; this is the closest it has ever been.

In the meantime, the latest surge has also contributed to the index's 9.4% rise so far this year, putting it on pace to record 10 straight annual advances.

As the top IT businesses also reported better-than-expected numbers, the early September quarter results show a comeback in earnings, particularly in the banking sector where companies reported gains in margins and a resurgence in lending.

As a result of these considerations, foreign investors have also changed their pessimistic outlook on the biggest economy in Asia, turning into net buyers in October and pouring ₹7,362 crore thus far.

Both the government and the RBI have implemented a number of policy steps in recent months to boost domestic consumption, the most recent of which being lowering the GST rate. The results of these actions are already being seen in the improvement in urban consumer confidence.

The Street is still hopeful that these factors would propel a strong profits rebound in the second half of FY26, which experts believe will maintain the momentum of the Indian stock market and possibly dispel its reputation as a poor performer among major international markets.

Is it possible for the Nifty 50 to reach a new high?

"The Nifty remained in an uptrend even during the Muhurat trading session, though the actual range remained small due to the shortened trading window," stated Rupak De, Senior Technical Analyst at LKP Securities. The index is still above the crucial 21 EMA, indicating that sentiment is still in favor of the bulls. The RSI appears poised to gain strength in the upcoming sessions after entering a very ambitious momentum zone. A short-term rally towards 26,000 or 26,200 appears feasible, with 25,700 serving as support.

The structure is still optimistic as long as the Nifty stays above 25,800, according to Ponmudi R, CEO of Enrich Money, with 25,750 serving as immediate support. A strong breakout over 26,000–26,300 might result in new lifetime highs, while 25,600–25,500 is a crucial support area on the downside.

He went on to say that strong Q2 earnings, festive liquidity, and consistent inflows from international institutions all contributed to the overall upbeat sentiment.