Nifty 50 Kicks Off 2026 with Gains, Eyes Higher Levels
The Indian equity market has commenced the new year 2026 on an optimistic footing. The benchmark Nifty 50 index closed at 26,146.55 on Wednesday, 1 January, registering a modest gain of 17 points or 0.06%. This marked the index's second consecutive positive session. The momentum continued into the next trading day, Friday, 2 January, with the index surging approximately 0.50% to touch an intraday high above the 26,270 mark.
Market analysts project a year of healthy returns for Indian stocks in 2026, driven by anticipated corporate earnings growth, a potential India-US trade deal, and the expected return of Foreign Institutional Investors (FIIs). Some experts are even forecasting the Nifty 50 to surpass the 29,000 level by the end of the calendar year.
Expert View: Breakout Could Trigger Further Rally
Ajit Mishra, Senior Vice President of Research at Religare Broking, believes the index is poised to gradually exit its current consolidation phase. He provided a crucial technical level for traders to watch. "A decisive breakout above the 26,200 level could pave the way for a move towards the 26,500–26,700 zone in the near term," Mishra stated.
He advised market participants to maintain a positive outlook and consider a 'buy on dips' approach. Sectors like banking, automobile, and metals are particularly favoured. Mishra emphasised that disciplined risk management remains paramount alongside this strategy.
Three Stock Picks for Short-Term Trading
Based on the technical setup, Ajit Mishra has identified three stocks that appear promising for short-term trading opportunities.
Bharat Heavy Electricals Ltd (BHEL)
The stock, last traded at ₹291.45, shows a bullish continuation pattern. This view is supported by a clear upside breakout with a significant expansion in trading volume, signalling strong buying interest. BHEL has rebounded firmly from its base and is trading above its key moving averages, indicating strengthening momentum. The overall structure suggests the uptrend is intact. Corrections are likely to find buying support. The recommended target is ₹310, with a stop loss at ₹280.
IndusInd Bank
With a last traded price of ₹890.20, IndusInd Bank exhibits a well-defined bullish trend characterised by a pattern of higher highs and higher lows. The stock has recently broken out from a prolonged consolidation, hinting at renewed upward momentum. It is trading firmly above its key moving averages, and a rising trendline continues to act as dynamic support, backed by increasing volume. The technical structure favours bullish continuation. The target price is ₹950, with a stop loss set at ₹855.
Larsen & Toubro (L&T)
L&T, trading at ₹4,140.40, has been in a steady uptrend since forming a low in April 2025. The stock has resumed its upward journey after a brief consolidation phase, confirming the primary trend. It is positioned above its upward-sloping key moving averages, which provide dynamic support. The rising trendline is intact, reinforcing the bullish bias, while steady volume points to healthy participation. The technical setup remains favourable for further upside. The target is ₹4,420, and the stop loss is ₹3,985.
Market Outlook and Key Takeaways
The positive start to 2026 has bolstered sentiment, with technical analysts identifying key resistance levels for the Nifty. The broader expectation of strong returns this year rests on fundamental pillars like earnings and foreign inflows. For active traders, experts recommend a sector-specific, buy-on-dips strategy with a focus on robust risk management, as illustrated in the stock recommendations above.
Disclaimer: This article is for educational purposes only. The views and recommendations above are those of the individual analyst and do not represent the views of the publication. Investors are strongly advised to consult certified experts before making any investment decisions, as market conditions are dynamic and individual circumstances vary.
