Silver prices can rally 20% to Rs 240,000/kg in 2026: Axis Securities

Silver prices that hit Rs 200,000-per-kilogram (kg) milestone in India on Friday have more room to climb, suggests a note from Axis Securities.

By Connect Gujarat Desk 12 Dec 2025 in Business

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Silver prices can rally 20% to Rs 240,000/kg in 2026: Axis Securities

Silver prices that hit Rs 200,000-per-kilogram (kg) milestone in India on Friday have more room to climb, suggests a note from Axis Securities.

In the domestic market, any correction down to the Rs 170,000-178,000 range, Axis Securities said, can be used for staggered accumulation, with the target of around Rs 240,000 for 2026.

Silver, Axis Securities said, has broken out of a multi-year consolidation phase, signaling the early stages of a long-term structural uptrend.

The monthly chart, it said, highlights a massive 'Rounding Bottom breakout formation' stretching from 2011 to 2025.

At the fundamental level, silver is undergoing a historic repricing event, marked by the decoupling from its traditional correlation with gold, analysts said.

The 2025 rally, driven by the convergence of industrial scarcity and monetary tailwinds, reflects supply/demand fundamentals defined by chronic, structural deficits.

The critical takeaway from the demand data, reports suggest, is the exponential growth in industrial demand, specifically from the green energy transition.

Demand from the Solar Photovoltaic sector has more than doubled in just four years, from 94.4 million ounces (Moz) in 2020 to 243.7 Moz in 2024. Solar alone accounted for nearly 21 of total demand in 2024 fundamentally altering the metal's usage profile, reports suggest.

On the technical charts, the 20-month and 60-month exponential moving averages (EMA), according to Axis Securities, are turning higher with a positive slope classic early cycle trend confirmation. Price trading well above long-term EMAs, it believes, reflects strengthening macro momentum.

The monthly RSI, too, is approaching overbought levels, the brokerage said, but remains in a healthy bullish zone. Historically, silver prices have shown extended rallies even when RSI stayed elevated indicating strength, not exhaustion, it said.

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