New year stock picks: Eternal, Kotak Mahindra Bank among top picks for 2026

After a volatile 2025, where benchmark indices scaled new highs but broader markets took a beating, domestic brokerage firm Bajaj Broking has shared its top picks for 2026. Based on the strong technical parameters, Bajaj Broking believes that these three stocks are headed for double digit gains for the investors. Here's what the brokerage firm said on them:
 

Eternal | Buy | Target Price: Rs 323 | Stop Loss: 275

Eternal has been in a corrective phase for the past 2–3 months and is now consolidating near a key demand zone. This setup offers a favorable risk–reward, indicating potential for a bullish reversal and a rebound from current oversold levels. The stock is currently exhibiting base-building price action around the key demand zone of Rs 280–270, which marks a confluence of multiple technical factors supporting a potential reversal. A key takeaway from Eternal’s weekly chart is its time–price behavior. The stock spent 11 weeks correcting just 80 per cent of the prior 11-week rally from Rs 257 to 368, reflecting underlying strength and a bullish bias. This controlled, time led correction is forming a higher base, setting the stage for the next upward impulse. We expect a rebound toward the Rs 323 zone in the coming months, which aligns with the 50 per cent Fibonacci retracement of the fall from Rs 368 to Rs 280 and coincides with the November 2025 high, making it a significant resistance level.
 

Lloyds Metal and Energy | Buy | Target Price: Rs 1,523 | Stop Loss: 1,209

Lloyds Metals and Energy has delivered a clear breakout above the falling channel that had contained prices over the past six months. This move signals a reversal of the corrective trend and highlights a renewed bullish setup, opening up a fresh entry opportunity from a positional perspective. From a longer-term trend confirmation angle, the 52-month EMA has consistently acted as a strong support over the last five years, reinforcing the stock’s structural strength. This key average is currently placed near the Rs 1,209 level, providing a solid support cushion on declines. Going forward, we expect the stock to maintain a positive bias and gradually move toward the Rs 1,523 level, which corresponds to the 80 per cent Fibonacci retracement of the broader decline from Rs 1,612 to Rs 1,170. Momentum indicators further validate this outlook, as the weekly 14-period RSI has generated a buy signal by crossing above its 9-period average, confirming strengthening momentum and supporting the bullish bias.
 

Kotak Mahindra Bank | Buy | Target Price: Rs 2,380 | Stop Loss: 1,880

Kotak Mahindra Bank has witnessed a decisive breakout above its prolonged 5-year consolidation range of Rs 1,600–2,000, marking a clear improvement in its long-term price structure. This breakout indicates a structural turnaround following an extended phase of sideways movement and reflects strengthening momentum along with renewed investor confidence. The former resistance zone of Rs 2,000 is expected to act as a strong support base, offering a favorable fresh entry opportunity from a positional perspective. From a trend-confirmation standpoint, the 52-month EMA has played a crucial role throughout the last five years by consistently acting as a reliable support, reinforcing the underlying bullish setup. Currently placed in the Rs 1,860–1,900 region, it also coincides with the rising long-term trendline, creating a strong confluence zone that further enhances downside protection. Going ahead, the stock is likely to maintain a positive bias and gradually trend higher over the next year. Based on the measured move implication of the 5-year range breakout, we expect Kotak Mahindra Bank to advance toward the Rs ,400 level, making the broader outlook constructive from a medium- to long-term perspective.