Premier Gladys Berejiklian expects to form a majority government with up to 49 seats after the Liberals performed better than expected at the state election, but she acknowledges western NSW lodged a "cry for help" when punishing the junior coalition partner.
Ms Berejiklian on Sunday again refused to concede the loss of any Liberal seats despite most pundits calling the eastern suburbs electorate of Coogee as a Labor gain.
The Liberal leader told reporters the coalition would win between 47 and 49 seats, allowing her to continue governing in her own right.
With almost 70 per cent of the votes counted, the Liberal-Nationals coalition had 46 seats - just one short of an outright majority - in the 93-seat parliament.
But even if it falls short, Ms Berejiklian will be able to rely on the three returning independents - Alex Greenwich, Greg Piper and Joe McGirr.
"I want them to have a strong working relationship with my government from day one - not just when I might need them," the premier told reporters on Sunday.
Ms Berejiklian said the win gave her an opportunity to put a new team together in a cabinet reshuffle.
The Nationals losses in Barwon and Murray in addition to massive swings against them in a swathe of other seats was a sign regional communities are doing it tough, the premier said.
"I've heard what they've said loudly and clearly ... in some ways it was a cry for help from western NSW."
The western third of NSW now belongs to the Shooters, Fishers and Farmers Party, who picked up both Barwon and Murray, while massively extending their lead in Orange.
Ms Berejiklian on Saturday became the first woman to be popularly elected premier of NSW and she'll lead the coalition into a third straight term for the first time in 50-odd years.
She told the party faithful on Saturday night she was incredibly proud of NSW where "someone with a long surname - and a woman - can be the premier".
Labor has won 35 seats so far with the Greens retaining three and the Shooters, Fishers and Farmers Party securing at least two.
Liberals hope the result is an indication NSW voters won't punish the prime minister and the party for the 2018 chaos in Canberra when they cast their ballots in May's federal election.
"How good is Gladys Berejiklian and how good is the Liberal Party here in NSW," Mr Morrison told supporters ahead of the premier's victory speech.
NSW Labor leader Michael Daley has only been in the top job for four months but after Saturday's poor showing his days could well be numbered.
He insisted on Sunday he'd remain as leader, noting Labor wasn't the only party to experience a dent in its primary vote.
"On primary votes we all went backwards, there's a deep cynicism in the electorate and that concerns me," Mr Daley told reporters.
"(The coalition) tripped over the line, I don't think they can say they had a great campaign or a great story to tell."
Labor frontbencher Jodi McKay - a potential leadership contender along with Chris Minns - backed Mr Daley to stay in the top job on Saturday night before adding: "In saying that, last week we had a bad week".
There's been a state-wide one per cent swing against Labor. The Liberals slid 2.4 per cent, the Nationals declined 0.9 per cent and the Greens slipped one per cent too.
Australian Associated Press