Investors looking for direction in the new year have fresh insights from brokerage research. Bajaj Broking Research has identified its top stock picks for the trading session of January 2, 2026, highlighting public sector lender Canara Bank and beauty e-commerce giant Nykaa as key buy recommendations. The firm has also provided a detailed technical outlook on the benchmark Nifty and the banking sector index, Bank Nifty.
Nifty and Bank Nifty: Range-Bound with an Upward Bias
According to the analysis, the Nifty index is expected to stay range-bound with an upward bias in the near term. The forecast suggests the index will oscillate within a corridor of 25,700 to 26,300. A decisive breakout from this band is seen as a critical inflection point that will determine the next major directional move for the market.
A sustained closing above the 26,300 level is viewed as a bullish trigger, potentially opening the path for an advance towards the 26,500 zone. On the support front, 26,000 is the immediate cushion. A more robust demand zone is placed between 25,700 and 25,800, which aligns with the 50-day Exponential Moving Average (EMA) and recent swing lows. Maintaining above this support cluster is deemed essential to preserve the positive momentum of the last quarter.
Bank Nifty Shows Relative Strength
The Bank Nifty continues to outperform the broader Nifty, displaying clear relative strength. The index is seen building a base within the 58,500 to 60,100 range. A decisive breakout above 59,500 could trigger fresh momentum, potentially driving the index towards its lifetime high region around 60,100.
The strong upward movement of the past two months is well-anchored within an ascending price channel. For the downside, a robust support zone exists between 58,300 and 58,600, converging with the 50-day EMA. The medium-term bullish structure is expected to remain intact as long as this support holds.
Stock-Specific Recommendations and Targets
Bajaj Broking's stock picks come with specific entry ranges, targets, and time frames.
For Canara Bank, the research suggests buying in the range of ₹153 to ₹155. The price target is set at ₹175, implying a potential return of approximately 13% over a 3-month period. The rationale is based on the stock establishing a strong uptrend with a multi-month breakout pattern and consistent higher highs and higher lows, indicating sustained buying interest. Key support is identified at ₹145, followed by ₹140.
For Nykaa (FSN E-Commerce Ventures), the recommendation is to buy in the range of ₹260 to ₹265. The target price is ₹292, which suggests an upside of around 11% within the same 3-month window. The analysis points to the stock trading above its key moving averages and forming a base on the weekly chart, signaling improving price stability and a strengthening trend. Immediate support is placed at ₹245.
Investment Perspective and Disclaimer
The technical outlook underscores that while momentum indicators for Canara Bank show robustness, an RSI reading above 70 indicates an overbought condition. However, the broader trend is considered intact, with any consolidation likely to be constructive. For Nykaa, the weekly RSI at 63 and an ADX reading of 28 signal bullish dominance and a strengthening trend.
It is important to note that recommendations, views, and tips on the stock market or other asset classes provided by experts are their own and do not represent the views of The Times of India or its affiliates. Investors are advised to consult with certified experts before making any investment decisions.
