Top stocks to buy (AI image)

Stock market recommendations: According to Bajaj Broking Research, the top stock picks for January 2, 2026 are Canara Bank, and Nykaa. Here’s its view on Nifty and Bank Nifty:Index View: NiftyNifty is expected to remain range-bound with an upward bias, oscillating within the 25,700–26,300 corridor in the near term. The index is positioned at a technical inflection point, where a decisive move outside this band is likely to define the next directional leg.A sustained close above 26,300 would act as a bullish trigger, paving the way for a potential advance toward the 26,500 zone in subsequent sessions.On the downside, 26,000 serves as immediate support. A stronger demand zone is placed between 25,700–25,800, which coincides with the 50-day EMA, recent swing lows, and a key retracement of the prior up-move.Maintaining trade above this support cluster is essential to protect the positive momentum of the past three months and keep the broader bullish structure intact.BANK NiftyBank Nifty continues to outperform the Nifty, displaying clear relative strength, and is in the process of base-building within the 58,500–60,100 band over the near term.A decisive breakout with follow-through above 59,500, which also coincides with an intermediate supply zone, could trigger fresh momentum toward the lifetime high region around 60,100 in the coming sessions.The strong up-move of the past two months remains well anchored within an ascending price channel, highlighting persistent accumulation even at higher levels.

On the downside, the 58,300–58,600 zone offers robust support, converging with the 50-day EMA and the earlier breakout base. As long as the index defends this support cluster, the medium-term bullish structure remains intact.

Stock Recommendations:

Canara BankBuy in the range of ₹ 153-155

Target

Return

Time Period

₹ 175

13%

3 Months

The counter has established a strong uptrend, marked by a multi-month breakout and a consistent higher high–higher low formation, highlighting sustained buying interest.

Prices continue to hold above major weekly moving averages, with rising volumes lending credibility to the ongoing strength.On the downside, 145 acts as immediate support, followed by 140. On the upside, resistance is placed near 170, which coincides with the 161.8% Fibonacci extension of the prior swing, and further at 175. Corrective declines toward the average should be viewed as accumulation opportunities.Momentum indicators remain robust; although the RSI above 70 indicates an overbought condition, the broader trend is intact, and any temporary consolidation is likely to be constructive rather than trend-reversing.NykaaBuy in the range of 260-265