As the market navigates a crucial juncture, Axis Securities has unveiled its top technical stock recommendations for Diwali 2026. The brokerage firm highlights Hindustan Aeronautics Ltd (HAL), Kotak Mahindra Bank, Tech Mahindra, and Sona BLW Precision Forgings as key investment opportunities, suggesting a staggered accumulation approach in quality large, mid, and small-cap stocks.
Market Outlook and Strategy
The Nifty 50 index currently stands at a significant point, testing its key support level of 22,100. According to Axis Securities, maintaining this level could pave the way for a recovery towards 23,600 - 24,000, with a decisive breakthrough potentially extending gains to 25,000. Conversely, a fall below 22,000 might signal further downside towards 21,500 - 21,000. Given this scenario, investors are advised to adopt a stock-specific accumulation strategy, closely monitoring the 22,100 Nifty level.
Axis Securities' Top Diwali 2026 Stock Picks
Here's a closer look at the recommended stocks and their technical outlook:
Hindustan Aeronautics Ltd (HAL)
- CMP: Rs 4,870
- Buy Range: Rs 4,600 - Rs 4,450
- Support Zone: Rs 4,550 - Rs 4,350
- Upside Potential: 22% - 29% (towards Rs 5,500 - Rs 5,850)
HAL's monthly chart shows a symmetrical triangle formation following a strong uptrend. A recent move above the descending trendline suggests a potential resumption of the broader uptrend, with sustained trading above this boundary reinforcing the bullish outlook. The monthly Relative Strength Index (RSI) remains above 50, indicating positive momentum.
Kotak Mahindra Bank
- CMP: Rs 459
- Buy Range: Rs 445 - Rs 420
- Support Zone: Rs 390 - Rs 370
- Upside Potential: 20% - 29% (towards Rs 520 - Rs 560)
On the six-monthly chart, Kotak Mahindra Bank appears to be breaking out from a prolonged consolidation phase that followed a strong advance. The stock established a robust base around the Rs 330 - Rs 300 mark during this period. The RSI has risen towards 70, signaling an improvement in bullish momentum.
Sona BLW Precision Forgings Limited
- CMP: Rs 874
- Buy Range: Rs 830 - Rs 770
- Support Zone: Rs 700 - Rs 660
- Upside Potential: 21% - 34% (towards Rs 965 - Rs 1,070)
Sona BLW Precision Forgings has broken out of an extended consolidation range that began in 2022. After forming a strong base around Rs 400, the stock recovered and moved above the Rs 750 - Rs 760 upper boundary. A recent pullback to this breakout zone, which could now act as support, strengthens the case for a continued uptrend if sustained.
Tech Mahindra
- CMP: Rs 1,770
- Buy Range: Rs 1,710 - Rs 1,650
- Support Zone: Rs 1,600 - Rs 1,500
- Upside Potential: 25% - 40% (towards Rs 2,100 - Rs 2,350)
Tech Mahindra's monthly chart indicates a strong rally followed by a corrective phase that found support near Rs 980 - Rs 1,000. The stock is now attempting to break above a resistance trendline connecting previous peaks, supported by improving bullish momentum reflected in the rising monthly RSI and increased trading volumes.
Disclaimer: This article provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.