As the year 2025 draws to a close, Indian equity markets are approaching the festive season with a blend of caution and optimism. The journey for investors this year has been turbulent, characterized by significant volatility, global economic uncertainties, shifting expectations around interest rates, and sharp rotations across different market sectors. While the major frontline indices managed to maintain their levels for much of the period, the broader market, particularly mid-cap and small-cap segments, endured sustained pressure following an exceptional rally in the preceding two years.
The benchmark Nifty 50 has gained close to 10% year-to-date in 2025. In stark contrast, the mid-cap index has remained virtually flat, and the small-cap index has declined by approximately 8%. However, market history suggests that such phases of consolidation often pave the way for the next significant trend. With Christmas and the New Year on the horizon, investors are actively scouting for opportunities that balance stability with growth potential.
Analyst Identifies Technically Strong Stocks for 2026
According to Hitesh Tailor, Technical Research Analyst at Choice Broking, certain large-cap and high-quality stocks are displaying robust technical patterns. These setups could offer rewards to disciplined investors as they position themselves for 2026. Tailor emphasizes that, despite short-term market noise, structurally sound stocks trading above their key long-term moving averages are well-positioned to benefit from a gradual improvement in market sentiment and earnings momentum.
1. Tata Consumer Products: A Consumer Staple with Momentum
In the consumer goods sector, Tata Consumer Products emerges as a technically compelling choice. The stock, trading near ₹1,184, has confirmed a breakout from a symmetrical triangle pattern on its weekly chart and has successfully retested the breakout level. This indicates a continuation of the primary uptrend rather than its exhaustion.
Tailor notes that the share price is firmly above its 20-day, 50-day, and 200-day moving averages, showcasing strong alignment across various timeframes. Support is visible around ₹1,140 and ₹1,100. A sustained move above ₹1,200 could potentially drive the stock toward the ₹1,350–1,380 range in 2026. From a positional investment standpoint for the coming year, Tailor suggests accumulation near current levels with an upside target of ₹1,380 and a stop loss at ₹1,080.
2. APL Apollo Tubes: Bullish Breakout in Manufacturing
Within the manufacturing space, APL Apollo Tubes is another festive season selection. Trading around ₹1,820, the stock has recently broken out of a prolonged consolidation range on the weekly charts, signaling a revival of bullish momentum. It is holding above all major long-term averages, including the 20-week, 50-week, 100-week, and 200-week Exponential Moving Averages (EMAs), reinforcing the trend's sustainability.
Immediate resistance lies near ₹1,850. A decisive close above this level could propel the stock toward the ₹2,080–2,100 zone. Strong support is positioned near ₹1,685, offering downside comfort. The analyst recommends a positional strategy with accumulation at current levels, a stop loss at ₹1,670, and a target of ₹2,100.
3. Tech Mahindra: IT Major Shows Renewed Strength
In the Information Technology sector, Tech Mahindra has caught the attention of positional investors once again. The stock, trading near ₹1,612.50, has delivered a clear breakout from a falling trendline on the weekly chart, followed by a pattern of higher highs and higher lows. Consistent buying interest is observed around the ₹1,500 mark, which aligns with its 20-week EMA.
With the stock trading above all key long-term averages and momentum indicators strengthening, Tech Mahindra could extend its uptrend toward ₹1,800 in 2026. Tailor's strategy involves accumulation at current levels, with a stop loss placed at ₹1,480 and an upside target of ₹1,800.
4. Torrent Pharmaceuticals: Steady Bullish Structure in Pharma
Torrent Pharmaceuticals continues to exhibit a steady bullish structure in the pharmaceutical domain. Trading around ₹3,800, the stock has formed a bullish continuation pattern after retesting its prior breakout zone. The formation of higher highs and higher lows reflects sustained institutional buying interest.
Strong support is placed near ₹3,500, while a decisive move above ₹3,850 could trigger the next upward leg toward ₹4,400. With the stock comfortably above its long-term averages and healthy momentum indicators, it presents an attractive risk-reward proposition for investors looking beyond short-term fluctuations. The positional view suggests a target of ₹4,400 with a stop loss at ₹3,500.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, and not of Mint. Investors are advised to consult certified experts before making any investment decisions.
