Nifty targets in 2026: Three brokerages project upside, here's what they say

Multiple brokerages have revised their Nifty50 targets upward for December 2026, with Goldman Sachs setting its forecast at 29,000, and Citi and ICICI Direct expecting the index to move towards 28,500 and 30,000, respectively. These projections follow a period of correction and subsequent recovery, with the index having moved within a rising channel since November 2021. ICICI Direct said that the index has been moving within a rising channel since November 2021, with the upper band indicating further upside.

 The current outlook is shaped by factors such as improving global sentiment, India's recent underperformance in emerging markets, and brokerages' preference for sectors like financials, consumer staples, defence, and oil marketing companies. However, risks flagged include potential earnings shortfalls, external headwinds, and uncertainties linked to artificial intelligence.

Technical analysis from ICICI Direct notes that historical support near the 52-week exponential moving average (EMA) around 24,700 has offered investors a favourable entry point.

On the weekly chart, ICICI Direct said buying near the 52-week exponential moving average of around 24,700 offers a favourable risk reward. Since 2008, Nifty has delivered average 12-month returns of approximately 30% after touching such levels, while typical drawdowns have averaged about 7% below the 52-week EMA. The index's recent rebound after a 17% correction is viewed as a healthy development, supporting a move towards the 28,600 zone in the medium term.

Citi's analysis anticipates a stronger risk-reward setup as 2026 approaches, noting that Indian equities have lagged and that many global portfolios remain underweight on the country.

Citi expects 2026 to begin with a stronger risk reward setup compared with 2025, citing that India has already seen sharp underperformance and that most emerging market portfolios remain underweight on the country.

The brokerage estimates a December 2026 Nifty target of 28,500, suggesting about a 10% upside based on a 20x one-year forward P/E multiple.

Both Citi and Goldman Sachs favour banks, telecoms, autos, healthcare, and defence as preferred sectors. Goldman Sachs, which upgraded India to 'Overweight' in November 2025, warns that earnings risks and technological changes could affect market trajectory but remains constructive on Indian equities into next year.