Is the Nifty Set to Retest Its Record High by March 2026?
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Synopsis
The Indian equity markets are bouncing back with positive momentum. A recent report suggests that the Nifty index could reach an impressive 27,000 by March 2026, driven by strong support levels and positive market sentiment.
Key Takeaways
- The Nifty index may reach 27,000 by March 2026.
- Technical support is positioned at 24,400–24,300.
- Strong sectors include banks, autos, metals, and consumer goods.
- Foreign institutional investors have sold Rs 1,80,443 crore in Indian equities.
- Corporate earnings are expected to grow over 15 percent in FY27.
New Delhi, Sep 22 (NationPress) The Indian equity markets are back on their upward path following a two-month corrective phase, with projections indicating that the benchmark Nifty index might reach the 27,000 mark by March 2026, according to a report released on Monday.
Bajaj Broking highlighted that the Nifty index achieved a higher high on the monthly chart for the first time in three months. The forecast suggests that the Nifty will maintain its bullish trend and approach its previous peak of 26,277 in the coming months. "A decisive break above that level could trigger a rally toward 26,800–27,000 by March 2026," the report stated.
Analysts from the broking firm noted that the markets have recently shown remarkable resilience during a phase of consolidation, despite rising geopolitical tensions and tariff changes, which indicates a healthy retracement within a broader uptrend.
This price movement reaffirms the underlying positive sentiment and risk appetite among market participants, the report added.
"In this context, a 'buy-on-dips' strategy remains strategically prudent, with solid support found near the 24,400–24,300 levels, which we do not expect to be breached in the near future," the report explained.
Analysts pinpointed technical support at 24,400–24,300, aligning with the 20-week exponential moving average and reflecting the lows of the previous two months.
The Nifty's 20- and 50-day EMAs, along with a rising trendline connecting significant highs and lows of 2025, converge around 24,800–24,700 in the short term.
Bajaj Broking anticipates that sectors such as banks, autos, metals, and consumer goods will exhibit relative strength. Investors seeking buying opportunities should consider stocks from public sector undertakings, telecom, and capital goods, the report advised.
Foreign institutional investors (FIIs) have offloaded Rs 1,80,443 crore worth of Indian equities so far in 2025, contributing to a consolidation phase in the markets.
Despite challenges posed by lackluster earnings, elevated valuations, and tariff uncertainties in the US, analysts are optimistic about a potential growth of over 15 percent in corporate earnings for FY27, which may positively influence FPI sentiments.
Point of View
It is crucial to recognize the resilience demonstrated by the Indian equity markets amid various challenges. The forecast for the Nifty index to potentially reach 27,000 by March 2026 reflects not just technical analysis but also a broader confidence in the market's recovery trajectory.
NationPress
22/09/2025
Frequently Asked Questions
What factors are driving the Nifty index's potential rise?
The Nifty index's potential rise is driven by strong technical support levels, positive market sentiment, and anticipated growth in corporate earnings.
What sectors are expected to perform well?
Sectors such as banks, autos, metals, and consumer goods are expected to show relative strength.
What is the significance of the 24,400–24,300 support levels?
The 24,400–24,300 support levels align with the 20-week exponential moving average, indicating a strong foundation for the Nifty index.
