Stocks to buy today, Jan 1: BPCL, Tata Consumer among analyst top picks

Market View by Ajit Mishra, senior vice president for research at Religare Broking

 

Markets ended the final trading session of the calendar year on a positive note, with the Nifty50 gaining around 0.74 per cent. The index opened marginally higher and gradually moved towards the 26,200 level during the session. However, profit-taking in the final hour trimmed some of the gains, and the Nifty eventually settled at 26,134. Sectoral participation was broad-based, with energy, metal and auto stocks emerging as the top performers. The broader market outperformed the benchmarks, with both mid- and small-cap indices rising close to 1 per cent each.

 

 

Market sentiment was primarily driven by domestic policy developments and stock-specific action. The government’s decision to impose safeguard duties on select steel imports boosted sentiment in the metal space, enhancing earnings visibility for domestic producers. Additionally, notable strength in heavyweight stocks across sectors provided further support to the market. These positives helped offset the impact of continued foreign institutional investor outflows, which otherwise kept overall sentiment cautious.

 

From a technical standpoint, the Nifty has once again approached the upper end of its prevailing consolidation range near 26,200. A decisive breakout above this level could trigger the next leg of upward momentum, while failure to do so may lead to renewed profit-taking. We maintain a positive yet cautious outlook on the index and recommend a sector-specific approach, with a preference for banking, auto and metal stocks, while remaining selective in other sectors.

Stocks to Buy Today - Recommendations

Bharat Petroleum Corporation | LTP: ₹384| Recommendation: Buy | Target: ₹410 | Stop-loss: ₹370

We are seeing noticeable traction across the oil marking companies (OMCs) and BPCL is leading from the front. It has been inching gradually higher for the last nine months, with price sustaining above the moving averages ribbon, confirming a dominant primary uptrend. Today i.e. Dec 31, it has witnessed a fresh breakout from a consolidation range and reclaimed its record high too. Supportive volume characteristics on advances are further validating buying conviction. The overall setup favors continuation of the prevailing trend, with interim pullbacks likely to be corrective in nature and presenting potential accumulation opportunities aligned with the broader bullish structure. 

Tata Consumer Products | LTP: ₹1,192| Recommendation: Buy | Target: ₹1,280 | Stop-loss: ₹1,145

While the FMCG pack is underperforming, we have handful of the stocks which are trading in sync with the benchmark trend and outperforming within the space. Tata Consumer is one such name as it is sustaining its primary uptrend and has undergone a healthy time-wise correction after a sharp rally. The prevailing phase indicates strong accumulation and formation of buying pivot around its record high level. The chart pattern signals potential of trend resumption soon so participants can consider fresh longs as per the mentioned levels.

Manappuram Finance | LTP: ₹308.55| Recommendation: Buy | Target: ₹334 | Stop-loss: ₹295

In line with the buoyancy in the bullion space, gold financing stocks such as Manappuram Finance are witnessing a steady uptrend. The stock has decisively broken out of a prolonged consolidation band, confirming a bullish continuation setup. It is trading firmly above its key moving averages, indicating a strengthening medium-term trend and improving demand. The recent breakout is supported by an expanding price range, suggesting fresh participation. Overall, the structure favors further upside, with the trend remaining constructive as long as prices hold above the prior breakout level.

(Disclaimer: This article is by Ajit Mishra, SVP – research, Religare Broking. Views expressed are his own.)