As the Indian stock market steps into 2026 after a volatile yet rewarding 2025, market experts maintain a bullish outlook. With broader indices consolidating near all-time highs, the focus has shifted to selective, stock-specific opportunities that promise to drive returns in the early part of the new year. Analysts advise investors to look for fundamentally strong companies with favourable technical chart patterns.
Expert's Top Picks for the New Year
Against this optimistic backdrop, Sumeet Bagadia, Executive Director at Choice Broking, has identified three stocks that continue to display robust trend structures, healthy consolidations, and attractive risk-reward profiles for 2026. These picks are based on a combination of technical analysis and key support levels.
1. Mahindra & Mahindra (M&M): Buy for a Target up to ₹4,180
Mahindra & Mahindra remains firmly positioned in a long-term uptrend and is currently in a phase of constructive consolidation following a sharp rally. The stock has been forming a pattern resembling a falling wedge near its highs, which typically indicates controlled profit-taking rather than a trend reversal.
Bagadia pointed out that the share price is holding above the crucial demand zone of ₹3,500–3,550, which aligns with the 100-day Exponential Moving Average (EMA) and signals persistent buying interest. He added that the 200-day EMA, situated near ₹3,250–3,350, offers solid medium-term support.
Currently trading around ₹3,650, the stock shows resilience near the 20-day EMA, suggesting buyers are active during dips. Momentum indicators like the Relative Strength Index (RSI) are balanced near 51. Bagadia recommends buying M&M at current levels, with a potential upside toward ₹4,000, followed by ₹4,180. He suggests using any decline toward ₹3,540 as an opportunity to accumulate more shares.
2. Marico: Eyeing Targets of ₹820-₹855
Marico continues to trade within a strong long-term upward trajectory, supported by a well-defined rising channel on its daily charts. After a sharp recovery from its March 2025 lows, the stock has been consolidating within this upward-sloping structure, reflecting sustained accumulation by investors.
According to Bagadia, the stock is holding firmly above the key support zone of ₹720–725, which coincides with both the 50-day and 100-day EMAs. He also highlighted that the 200-day EMA near ₹690–700 forms a strong foundation for the medium-term trend.
Trading around ₹741, Marico is displaying stability near its short-term moving averages. The overall chart structure remains constructive, with the pattern of higher highs and higher lows intact. This setup opens the door for a potential move toward ₹820 and ₹855. Bagadia advises that dips toward ₹723 could offer fresh entry points for investors.
3. Hindustan Petroleum (HPCL): Poised for a Move to ₹550
Hindustan Petroleum Corporation Ltd (HPCL) has resumed its bullish structure after a corrective phase and continues to chart a pattern of higher highs and higher lows. The stock is currently consolidating near the upper end of its range, indicating healthy profit booking.
Bagadia noted that HPCL is holding comfortably above the ₹460–465 zone, which aligns with the 50-day EMA. The 200-day EMA, positioned near ₹440–445, reinforces the broader uptrend. With the RSI near 58, momentum remains positive without entering overbought territory, keeping the stock poised for further gains.
The analyst sees a near-term potential for the stock to move toward ₹525 and ₹550. He recommends considering the stock at around ₹470, with declines toward ₹460 viewed as opportunities to buy.
Market Outlook and Final Word
The consensus among experts is that 2026 could see the Indian equity market delivering returns through carefully selected stocks rather than a broad-based rally. The identified stocks—M&M, Marico, and HPCL—exhibit the technical strength and fundamental backing that analysts favour in a consolidating market.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies and not of the publisher. Investors are strongly advised to consult with certified experts before making any investment decisions.
