Stocks to buy: Aadhar Housing Finance, Union Bank, Tata Power are top picks

Choice Equities' technical research analyst, Aakash Shah, recommends buying Aadhar Housing Finance, Union Bank of India, and Tata Power Limited

Stocks to buy today, January 5, 2026:

Aadhar Housing Finance

Buy AADHARHFC in Cash ₹500.55 | Stop Loss: ₹ 475 | Target Price: ₹550

 

Aadhar Housing Finance share price is currently trading around ₹500.55 and is showing clear signs of emerging strength after spending a considerable period in a sideways consolidation phase. The stock has recently given a decisive breakout from this range, indicating a shift from neutral to bullish bias. The latest price action reflects improving sentiment, supported by a strong bullish closing candle above the previous swing high, which adds conviction to the breakout structure. 

From a trend perspective, Aadhar Housing Finance has reclaimed all key moving averages — the 20, 50, and 200 exponential-moving averages (EMAs) — and is sustaining above them, highlighting improving short-, medium-, and long-term momentum. The ₹480 zone has acted as a strong demand area, aligning with the 200-day exponential-moving average (EMA), where accumulation was clearly visible during prior declines. This confluence of price support and long-term moving average reinforces the strength of the base formation.

  Momentum indicators further support the bullish outlook. The relative strength index (RSI) is currently at ₹59.30 and has reversed sharply from the oversold zone, suggesting a revival in buying interest without entering overbought territory. Given the confirmed sideways range breakout, short-term traders may consider buying at current levels with a stop loss at ₹475, aiming for an upside target of ₹550, provided disciplined risk management is maintained.

Tata Power  

Buy TATAPOWER in Cash ₹393.10 | Stop Loss: ₹ 374 | Target Price: ₹430

 

Tata Power share price is currently trading around ₹393.10 and is exhibiting improving price structure after a prolonged sideways consolidation. The stock has recently delivered a clear sideways range breakout, following sustained accumulation near the lower support zone, which signals a shift in market control from sellers to buyers. The breakout has been supported by healthy price action, indicating growing participation and improving confidence among market participants. 

From a trend perspective, Tata Power is trading above all its key moving averages — the 20, 50, 100, and 200 exponential-moving averages (EMAs) — which reflects strong alignment across short-, medium-, and long-term timeframes. This stacked EMA structure suggests a well-established uptrend with pullbacks likely to attract buying interest. On the downside, the ₹375–₹380 zone stands out as an immediate support area, where demand has consistently emerged, making it a crucial level to monitor for trend sustainability. 

Momentum indicators further reinforce the positive outlook. The relative strength index (RSI) is currently placed at ₹62.38 and has shown a strong reversal from lower levels, continuing to trend higher, which confirms strengthening bullish momentum without signs of exhaustion. Given the confirmed sideways range breakout, short-term traders may consider buying at current levels with a stop loss at ₹374, targeting an upside move toward ₹430, provided disciplined risk management is followed.

Union Bank of India

Buy UNIONBANK in Cash  ₹156.70, Stop Loss: ₹148 Target Price: ₹174

 

Union Bank of India share price is currently trading around ₹156.70 and is showing a constructive price structure after delivering a decisive trendline resistance breakout. The breakout has been followed by a successful retest, where the stock attracted strong buying interest near the previous resistance-turned-support zone. This area is further reinforced by the 50-day exponential-moving average (EMA), highlighting healthy accumulation and confirming the sustainability of the breakout move. 

From a broader trend perspective, the stock is trading firmly above its key 20, 50, 100, and 200 exponential-moving averages (EMAs), signalling strength across short-, medium-, and long-term timeframes. This EMA alignment reflects improving trend quality and indicates that dips are likely to be bought into rather than sold. On the downside, immediate support is placed around ₹152, aligned with the 20-day exponential-moving average (EMA), followed by a stronger support near ₹150, where the rising trendline and 50-day exponential-moving average (EMA) converge, reinforcing the bullish structure.

  Momentum indicators are also supportive of further upside. The relative strength index (RSI) is currently at ₹61.38 and has reversed strongly from lower levels, continuing to move higher, which confirms increasing buying momentum without entering overbought territory. With the breakout and retest in place, short-term traders may consider buying at current levels with a stop loss at ₹148, targeting an upside move toward ₹174, provided disciplined risk management is followed.    ==============  Disclaimer: This article is by Aakash Shah, technical research analyst at Choice Equity Broking. Views expressed are his own.