The Indian stock market is ending the year with modest gains, and experts believe that the coming year will reward stock-pickers who focus on quality stocks with healthy fundamentals and sound technical indicators. With this in mind, we've identified five stocks that have the potential for long-term growth.
Expert's Top Picks
Jigar S. Patel, Senior Manager of Equity Technical Research, has suggested five stocks to buy for 2026. These stocks have been selected based on their technical signals, momentum indicators, and potential for upside growth.
Stocks to Buy
- Birlasoft: With a target price of ₹600 and a potential upside of 38%, Birlasoft is forming a double-bottom structure on the weekly chart. The stock has a strong demand zone near the 61.8% Fibonacci retracement level, and momentum indicators are turning favourable.
- Praj Industries: With a target price of ₹440 and a potential upside of 28%, Praj Industries has corrected nearly 67% over the past year, bringing the price back toward a critical demand zone near the ₹300 mark. The stock has witnessed strong buying interest and a sharp surge in volumes, signalling renewed accumulation.
- Tata Elxsi: With a target price of ₹6,800 and a potential upside of 26%, Tata Elxsi has been in a gradual corrective phase since 2022, resulting in a drawdown of nearly 56% from its peak. The stock is now trading within a key retracement pocket between the 50% and 61.8% Fibonacci levels, an area that often acts as a medium-term accumulation zone.
- Coal India: With a target price of ₹470 and a potential upside of 22%, Coal India has been in a prolonged consolidation phase for nearly 10-12 months, largely trading within the ₹370-400 band. The stock has broken above its previous swing high, signalling a potential end to consolidation and the beginning of a fresh upward phase.
- Rail Vikas Nigam (RVNL): With a target price of ₹390 and a potential upside of 22%, RVNL has formed a bullish Bat pattern near the ₹300-305 zone. This region has consistently acted as a price cushion since August 2025, making it a critical support area for the stock.
Investment Advice
Remember, this is a perspective, not a prediction. It's essential to do your own research and consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.