The Indian equity market kicked off the new calendar year 2026 with powerful momentum, as benchmark indices scaled fresh all-time peaks. The rally was broad-based, with significant buying activity observed in banking, automobile, metals, and public sector undertaking (PSU) stocks. Robust domestic liquidity effectively countered any sporadic profit-taking, maintaining a firm undertone.
Market Outlook and Technical Perspective
The Nifty 50 index's surge to unprecedented levels was fueled by positive sentiment ahead of the third-quarter earnings season and unwavering faith in India's long-term growth narrative. While FMCG stocks faced some selective selling pressure due to sectoral headwinds, the overall market mood remained decidedly optimistic. The week showcased a healthy rotational upmove at higher levels, setting a positive stage for the year ahead.
Sumeet Bagadia, Executive Director at Choice Broking, noted a significant improvement in market sentiment after the Nifty 50 convincingly surpassed the 26,200 resistance mark. He stated that the index is now poised to advance towards the 26,550-26,600 range. Bagadia advises investors to focus on stocks demonstrating strength on technical charts.
"The Indian stock market mood is looking strong as the Nifty 50 index has finally broken above the 26,200 hurdle," Bagadia commented. He added that the index has immediate support at 26,050, and a 'buy on dips' strategy should be maintained as long as this support holds.
Top Stock Recommendations from an Expert
For trading on Monday, Sumeet Bagadia has recommended three stocks: Bharat Electronics Ltd (BEL), ICICI Bank, and Reliance Industries.
Bharat Electronics Ltd (BEL)
Recommendation: Buy at ₹403, Target ₹435, Stop Loss ₹388.
The BEL share price concluded the previous session near ₹403, exhibiting stability after a period of consolidation. The stock's price pattern remains constructive, marked by a sequence of higher highs and higher lows, suggesting recent dips were corrections within a larger uptrend. Trading above its key Exponential Moving Averages (EMAs), which are aligned bullishly, signals a strong trend. The setup indicates a potential move towards the ₹435 zone, provided the share price stays above the crucial support of ₹388.
ICICI Bank
Recommendation: Buy at ₹1355, Target ₹1444, Stop Loss ₹1315.
ICICI Bank's shares are currently in a corrective phase on the daily chart, trading below all major EMAs, which now act as resistance. A decisive close above the 20-day EMA at ₹1,357 could signal improving short-term momentum, with sustained strength confirmed only above ₹1,367. This could open the path towards the ₹1,444 target. The key support zone to watch is between ₹1,330 and ₹1,315; a breach below this level would weaken the structure.
Reliance Industries
Recommendation: Buy at ₹1592, Target ₹1700, Stop Loss ₹1555.
Reliance shares are in a powerful uptrend, trading around ₹1,592 after hitting a new record high. The stock has registered a bullish breakout by moving past the previous swing high of ₹1,581. It trades well above all positively aligned EMAs, with the 20-day EMA serving as dynamic support. The Relative Strength Index (RSI) at 66 shows healthy bullish momentum. The trend is likely to persist as long as the stock holds above the short-term support, with an upside target of ₹1,700.
Disclaimer: This article is for educational purposes only. The views and recommendations are those of the individual analyst and not of Mint. Investors are advised to consult certified experts before making any investment decisions.
