As Indian equities navigate near-term volatility driven by geopolitical tensions, elevated crude prices, and rising bond yields, Bajaj Broking maintains a constructive outlook for the market. The brokerage firm highlights resilient Q2FY27 earnings as a reinforcement of the domestic growth trajectory. With Nifty valuations currently below long-term averages, Bajaj Broking anticipates an earnings-led recovery and healthy market returns over the coming 12 months. Here are its top stock picks for Diwali 2026:
Technical Stock Picks for Diwali 2026
ICICI Bank
ICICI Bank Ltd. shares demonstrate a strong positive trend, outperforming the Bank Nifty. The stock has broken above a significant falling supply line on its ratio chart, indicating sustained strength. Sustaining above its 52-week EMA and a rising demand line on the weekly chart, ICICI Bank is projected to extend its outperformance, targeting Rs 1,570 in the long term. This target represents the 123.6% external retracement of its previous major decline. The weekly 14-period RSI also supports a positive bias.
Adani Power
Adani Power Ltd. has seen a five-month corrective decline reach maturity, with the stock rebounding from a major support area around Rs 175. This support level aligns with the 52-week EMA and the neckline of its previous cup & handle breakout area from April 2026. The stock's formation of higher highs on the weekly chart signals a return of positive momentum. Adani Power is expected to resume its primary uptrend, heading towards Rs 223 in the coming quarters, which is the 61.8% retracement of its recent decline. A weekly stochastic buy signal further validates this strength.
Lloyds Engineering Works
Lloyds Engineering Works Ltd. stands out as a strong performer this year, consistently forming higher highs and higher lows on its long-term chart. The stock generated a breakout above a two-year consolidation range (Rs 35-77) and has rallied significantly. With strong support established at Rs 75-77, coinciding with the upper band of its recent range breakout and 52-week EMA, the stock is poised to extend its outperformance. Lloyds Engineering Works is expected to target Rs 99-104 in the coming quarters, aligning with its recent all-time high. Volume analysis shows price rises accompanied by strong volume, indicating robust participation in the trend direction.
Fundamental Stock Recommendations
Beyond these technical picks, Bajaj Broking Ltd. has also shared several fundamental stock ideas across various segments and sectors, anticipating approximately 15 percent upside in these counters. Key fundamental picks include:
- Mahindra & Mahindra Ltd: Target Price: Rs 3,251
- Varun Beverages Ltd: Target Price: Rs 459
- CG Power & Industrial Solutions Ltd: Target Price: Rs 938
- GE Vernova T&D India: Target Price: Rs 4,545
- Sudarshan Chemical Industries: Target Price: Rs 1,144
- Rolex Rings Ltd: Target Price: Rs 185
Disclaimer: This information is provided for educational and informational purposes only and does not constitute investment advice. Readers should consult with a qualified financial advisor before making any investment decisions.