Indian equity markets have regained momentum after a two-month corrective phase, with Bajaj Broking projecting that the benchmark Nifty 50 index could hit a record high, climb to the 27,000 mark by March 2026, translating into an upside of over 7% from current levels.
In its latest report, the brokerage highlighted that the Nifty registered a higher high on the monthly chart for the first time in three months. The firm expects the index to maintain its bullish trajectory and retest its record high of 26,277 in the coming months.
“A decisive break above that level would lead to a rally towards 26,800–27,000 by March 2026,” Bajaj Broking said.
According to the report, the index has strong support at 24,400–24,300 levels, which is not expected to be breached. Short-term support has been identified at 24,800–24,700, providing investors with attractive entry opportunities.
“In this context, a ‘buy-on-dips’ approach remains strategically sound, with strong support placed near the 24,400–24,300 levels, which we do not foresee being violated in the near term,” the brokerage added.
The firm also noted that markets have recently consolidated with remarkable resilience amid rising geopolitical tensions and tariff developments, indicating a healthy retracement within a longer-term uptrend.
Key levels to watch out for
Despite global headwinds such as rising geopolitical tensions and tariff-related challenges, Indian markets have displayed notable resilience. The recent consolidation phase is seen as a healthy retracement within a broader uptrend, with price action reaffirming positive sentiment and investor risk appetite.
Bajaj Broking noted that technical support at 24,400–24,300 aligns with the 20-week exponential moving average and coincides with the lows of the last two months. Meanwhile, immediate support at 24,800–24,700 is supported by the confluence of the 20- and 50-day EMAs and a rising trendline connecting major lows of calendar year 2025.
Looking ahead, the brokerage expects banks, autos, metals, and consumer sectors to show relative strength. It also advised investors to watch out for opportunities in public sector undertakings, telecom, and capital goods stocks.
Possible triggers for a bullish Nifty
Motilal Oswal echoed the bullish view, pointing out that Indian equities, after a year of underperformance, are likely to rebound in the coming quarters. The brokerage highlighted that the Nifty’s 12-month forward price-to-earnings ratio stands at 20.6x, nearly in line with its long-period average of 20.7x, leaving room for valuation expansion once policy measures begin to show results, particularly in the second half of FY26.
Nachiketa Sawrikar, Fund Manager at Artha Bharat Global Multiplier Fund, also believes the backdrop favours Indian markets.
“India should expect stronger capital inflows—particularly in Q4, when large global asset managers finalise allocations. Moreover, the US Fed rate cut comes at a time when the Indian economy is demonstrating resilience, even in the face of headwinds such as the Trump administration’s imposition of a 50 per cent tariff on Indian exports,” Sawrikar said.
He added that India stands to benefit from a “double engine” of global liquidity easing and robust domestic fundamentals.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
