The Indian stock market faced significant headwinds in 2025, underperforming its major global counterparts. This was driven by a combination of concerns over US tariffs, substantial foreign institutional investor (FII) outflows, disappointing corporate earnings, and currency volatility. However, a sense of cautious optimism is emerging for 2026. Market experts anticipate a better year ahead, fueled by expected earnings growth, the potential for a favorable India-US trade deal, and the anticipated return of foreign capital.
A Cautiously Optimistic Outlook for 2026
Despite the brighter prospects, analysts do not foresee a runaway bull rally. Market valuations remain somewhat elevated, and geopolitical uncertainties persist, making a sharp gain of over 15% unlikely in the coming year. Consequently, 2026 is expected to remain a stock picker's market, where carefully selected shares could deliver robust returns even if the broader indices experience volatility.
In this context, brokerage firm Nirmal Bang has identified ten technical picks for the next year, highlighting significant upside potential. Here is a detailed look at their analysis and recommendations.
Nirmal Bang's Top Technical Picks for the Long Term
Sequent Scientific | Target: ₹320 | Upside: 50%
The brokerage highlighted that Sequent Scientific has formed a robust cup and handle pattern on its quarterly and monthly charts, indicating a strong long-term bullish trend. The stock is testing a key downward trendline, aligning with a potential handle breakout. Price action shows higher highs and higher lows, with the stock sustaining above crucial moving averages. Volume analysis suggests accumulation. Nirmal Bang advises buying on dips near support, with a target price of ₹320 and a stop loss at ₹176.
Container Corporation of India (Concor) | Target: ₹770 | Upside: 48%
After a prolonged correction, Concor has formed cluster supports on weekly charts. It found strong support at the 61.8% Fibonacci retracement level (₹490), creating a solid base. Momentum indicators are favoring buyers, and the Relative Strength Index (RSI) is positioned bullishly. A near-term reversal is expected, potentially driving the stock to ₹770. Investors are advised to buy at ₹520 and add more on dips to ₹480, with a stop loss at ₹440.
One 97 Communications (Paytm) | Target: ₹1,870 | Upside: 42%
Paytm's monthly chart shows a long-term breakout from an inverted head and shoulder pattern, signaling positive momentum. The stock is holding firmly above its 50-day and 200-day moving averages. A decisive close above ₹1,400 could confirm a strong rally. Supported by rising volume and a bullish RSI above 60, the stock is poised for a swift upward move, according to the analysis.
SRF | Target: ₹4,180 | Upside: 34%
SRF is in a long-term uptrend and is on the verge of breaking out from a symmetrical triangle pattern on weekly charts. After 4-5 years of consolidation, the stock broke out this year with strong volume. It is trading within an upward channel on monthly charts, with RSI above 60, indicating strength. The stock is positioned above all key moving averages.
Birlasoft | Target: ₹600 | Upside: 34%
Birlasoft has witnessed a triangle breakout on weekly charts, accompanied by a positive divergence in RSI. High volumes near lows suggest strong support buying. The stock could move towards ₹600 in the near to mid-term. Investors can add on declines to ₹425, with a stop loss at ₹400.
Bharat Forge | Target: ₹1,870 | Upside: 29%
Following a sharp correction from its 2024 peak, Bharat Forge found support around ₹900 and has shown a strong reversal since April 2025. It is forming the CD leg of a bearish bat harmonic pattern, suggesting an up move. The stock recently broke a cluster resistance and is nearing a breakout above the 61.8% Fibonacci level at ₹1,466. It has also crossed its 200-day moving average, indicating renewed strength.
NBCC | Target: ₹155 | Upside: 28%
NBCC broke out from a symmetrical triangle pattern after a period of long-term accumulation. It is trading firmly above the critical 61.8% Fibonacci extension level and all key moving averages, supported by rising volume. The RSI has confirmed a positive crossover above 50, supporting the anticipated upward move.
Bank of Baroda (BoB) | Target: ₹360 | Upside: 25%
Bank of Baroda shares have broken a two-year resistance after a consolidation phase. The last six months have seen short-covering activity and a reduction in open interest, indicating a positive bias. Technical indicators suggest the stock can move towards ₹360. Investors can add on declines to ₹275, with a stop loss at ₹260.
R R Kabel | Target: ₹1,820 | Upside: 22%
R R Kabel broke out from a symmetrical triangle pattern with steady volumes and is forming higher tops and higher bottoms on weekly charts. It is well-placed above the 61.8% Fibonacci support level. The RSI is above 60 on weekly charts, and the MACD is in positive territory, confirming a bullish sentiment.
Bajaj Auto | Target: ₹10,900 | Upside: 20%
After correcting sharply from its highs, Bajaj Auto has shown a reversal and is trading at the support of an upward-rising channel. It is positioned above its 200-day moving average and is witnessing a breakout from a bullish pennant pattern. The RSI's positive crossover above 50 indicates a potential up move towards ₹10,900.
Navigating a Selective Market
The overarching theme for 2026, as highlighted by Nirmal Bang's analysis, is selectivity. While macroeconomic challenges may cap broad market surges, specific stocks with strong technical setups and fundamental stories are poised to outperform. Investors are advised to focus on such identified opportunities while maintaining strict risk management through prescribed stop-loss levels. As always, it is recommended to consult with certified financial experts before making any investment decisions, as market dynamics can shift rapidly.
