Top Stock Picks for 2026: M&M, Marico, HPCL with 20% Upside

Navigating the 2026 Market Landscape

As investors look toward 2026, the market presents a mixed environment shaped by shifting global trends, volatile capital flows, and varying sectoral performance. In this climate, careful stock selection is more critical than relying on broad market movements. Analysts suggest that companies with robust balance sheets, clear earnings visibility, and strong pricing power are positioned to perform well. Sumeet Bagadia, Executive Director at Choice Broking, has identified three stocks based on thorough technical analysis that offer solid upside potential for the new year: Mahindra & Mahindra (M&M), Marico, and Hindustan Petroleum (HPCL).

Mahindra & Mahindra (M&M): Poised for a Breakout

Mahindra & Mahindra has maintained a strong long-term uptrend and is currently in a phase of healthy consolidation following a significant rally. The stock's price action is forming a falling wedge pattern, which typically signals controlled profit-taking rather than a reversal of the primary trend. This suggests that the underlying bullish sentiment remains intact. The stock is currently trading around ₹3,650, showing resilience near its 20-day Exponential Moving Average (EMA), indicating that buyers are stepping in during minor dips.

The price is holding above a crucial demand zone of ₹3,500-₹3,550, which is further supported by the 100-day EMA. A stronger medium-term support level is established by the 200-day EMA, located near ₹3,250-₹3,350. The Relative Strength Index (RSI) is hovering around 51, indicating neutral momentum with significant room for upward movement once the consolidation phase concludes. Based on this technical structure, the recommendation is to buy the stock at its current price, with accumulation opportunities on dips toward ₹3,540.

Marico: Riding a Strong Upward Channel

Marico continues its long-term uptrend, trading within a well-defined rising channel on its daily chart. Following a sharp recovery, the stock has been consolidating within this channel, a sign of healthy accumulation and sustained investor interest. The price is holding firmly above the key demand zone of ₹720-₹725, which aligns with both the 50-day and 100-day EMAs, reinforcing near-term support. The broader bullish structure is supported by the 200-day EMA, which acts as a strong medium-term base near the ₹690-₹700 level.

Currently trading around ₹741, Marico has demonstrated resilience near its short-term moving averages, suggesting active buying on declines. The overall price structure remains constructive, characterized by a pattern of higher highs and higher lows. Momentum indicators reflect steady strength with potential for further gains. The stock is recommended as a buy at its current market price, with declines toward ₹723 offering additional buying opportunities. The major structural support for the broader trend is identified at ₹690.

Hindustan Petroleum (HPCL): Resuming its Bullish Trajectory

Hindustan Petroleum is also in a strong long-term uptrend, having resumed its bullish structure after a previous corrective phase. The stock is characterized by higher highs and higher lows and is currently undergoing a healthy consolidation. This indicates that recent price action is driven by profit booking rather than a fundamental shift in trend. The price is holding comfortably above the ₹460-₹465 demand zone, which coincides with the 50-day EMA. The 200-day EMA, located near ₹440-₹445, provides strong medium-term support and reinforces the broader bullish outlook.

Trading around ₹470, HPCL shows stability above its short- and medium-term moving averages, suggesting active buyer interest on any price dips. The RSI is near 58, indicating positive momentum with ample room for further upside before reaching overbought levels. The recommendation is to buy at the current price, with potential to accumulate on dips toward ₹460. The major structural support for the trend is placed at ₹442.

Summary of Recommendations

Here is a quick overview of the key levels for the recommended stocks:

Investment Rationale and Market Outlook

The selection of these stocks is grounded in their strong technical setups, which suggest that their prevailing uptrends are likely to continue. Each company is undergoing a period of consolidation, which often precedes the next leg of an upward move. The favorable risk-reward ratios, combined with clearly defined support levels, provide a structured approach for investors entering these positions.

As the market heads into 2026, macro uncertainties such as interest rate policies and geopolitical events will continue to influence investor sentiment. However, focusing on fundamentally sound companies with positive technical momentum can offer a path to generating returns. These three picks represent opportunities for investors to capitalize on established trends with clear entry and exit points.

Disclaimer: The views and recommendations expressed in this article are solely those of the analyst. This information is for educational purposes only and should not be considered as investment advice. Please consult with a licensed financial advisor before making any investment decisions.