Daijiworld Media Network - Mumbai
Mumbai, Jan 2: Bajaj Broking Research has recommended Canara Bank and Nykaa as its top stock picks for Friday, January 2, 2026, while maintaining a positive outlook on benchmark indices Nifty and Bank Nifty amid ongoing consolidation.
According to analysts, the Nifty is expected to trade in a range with an upward bias, likely moving between 25,700 and 26,300 in the near term. The index is currently at a crucial technical juncture, with a decisive breakout expected to determine the next directional trend.
A sustained move above 26,300 could act as a bullish trigger and pave the way for a rally towards the 26,500 level in the coming sessions. On the downside, 26,000 is seen as immediate support, while a stronger demand zone is placed between 25,700 and 25,800, which aligns with the 50-day EMA, recent swing lows and a key retracement level. Holding above this support is critical to maintain the positive momentum built over the past three months.
Bank Nifty continues to outperform the broader market, reflecting strong relative strength. The index is currently consolidating within the 58,500–60,100 band as it undergoes a base-building phase.
A decisive breakout above 59,500, which coincides with an intermediate supply zone, could lead to fresh upside momentum towards the 60,100-lifetime high region. The strong up-move seen over the last two months remains intact within an ascending price channel, indicating sustained accumulation at higher levels.
On the downside, the 58,300–58,600 zone is expected to provide strong support, converging with the 50-day EMA and the earlier breakout base. As long as this support zone holds, the medium-term bullish structure of the index remains intact.
Bajaj Broking has recommended buying Canara Bank in the Rs 153–155 range. The stock has witnessed a multi-month breakout and continues to form a higher high–higher low structure, signalling sustained buying interest. Prices remain above key weekly moving averages, supported by rising volumes.
Immediate support is placed at Rs 145, followed by Rs 140, while resistance is seen near Rs 170 and Rs 175. Analysts suggest that any corrective dips could be utilised as accumulation opportunities. Despite the RSI indicating an overbought condition, the broader trend remains strong.
Nykaa is recommended as a buy in the Rs 260–265 range. The stock is trading above its major moving averages and has formed a base on the weekly chart, indicating improving price stability. A higher high–higher low pattern confirms strengthening momentum.
Support is seen at Rs 245 and Rs 240, while short-term resistance is placed near Rs 275, with further upside potential towards Rs 292. Momentum indicators remain supportive, with ADX indicating trend strength and RSI reflecting bullish dominance.