Long-Term Stock Picks: Anand Rathi's Jigar Patel Recommends 5 Shares for 2026, Including Coal India and RVNL

The Indian stock market is wrapping up the year with moderate gains, navigating a mix of positive and negative influences. Domestic institutional investors (DIIs) have been strong buyers, buoyed by favorable growth and inflation trends, which has helped keep the market positive. That said, the reality is a bit more complicated. substantial foreign capital outflows, driven by high earnings multiples, delays in the India-US trade agreement, lackluster earnings reports, and a weaker rupee, have limited overall gains.

The Nifty 50 has risen by over 9% this year, while the broader Nifty 500 index has seen gains exceeding 5%. Within the Nifty 500, some stocks like Force Motors (up 173%) and L&T Finance (up 122%) have delivered multibagger returns, while others such as Tejas Networks (down 62%) and Ola Electric (down 60%) have experienced losses exceeding 50%.

Looking ahead, market experts believe that stock picking will be crucial, favoring investors who carefully select individual stocks rather than broadly betting on entire sectors. While numerous opportunities exist across various sectors, they advise focusing on quality stocks that demonstrate strong fundamentals and positive technical indicators for the coming year.

Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, has identified five stocks that he believes are promising buys for 2026. Here’s a closer look at his recommendations:

• Birlasoft**
• Previous close: ₹433.45
• Target price: ₹600
• Stop loss: ₹335
• Upside potential: 38%

Patel notes that Birlasoft is forming a double-bottom pattern on the weekly chart near the 61.8% Fibonacci retracement level, measured from the COVID lows to the January 2024 peak. This zone has historically acted as a strong demand area, providing support and halting the stock's downward correction.

Additionally, momentum indicators are showing positive signs. The weekly RSI displays bullish divergence and has surpassed its previous swing high, indicating increasing strength and a potential trend reversal.

Patel suggests a gradual accumulation strategy, recommending purchases in the ₹435–415 range, targeting an upside near ₹600. He advises managing risk with a stop loss below ₹335 on a daily closing basis.

• Praj Industries**
• Previous close: ₹343.20
• Target price: ₹440
• Stop loss: ₹290
• Upside potential: 28%

According to Patel, Praj Industries has corrected by nearly 67% over the past year, bringing the price back to a critical demand zone near ₹300. This level served as a reliable support area in 2022 and 2023.

Recent trading sessions have shown strong buying interest, accompanied by a significant increase in trading volumes, indicating renewed accumulation of the stock.

Technically, the S2 floor yearly pivot aligns with the ₹300 support level, reinforcing its importance. The weekly RSI has also completed a sharp V-shaped recovery, signaling a positive shift in momentum after an extended decline.

Patel recommends a staggered buying approach in the ₹345–330 range, targeting an upside of ₹440, with a stop loss at ₹290 on a daily closing basis.

• Tata Elxsi**
• Previous close: ₹5,413.50
• Target price: ₹6,800
• Stop loss: ₹4,600
• Upside potential: 26%

Patel points out that Tata Elxsi has been in a gradual corrective phase since 2022, resulting in a drawdown of approximately 56% from its highest point. The stock is currently trading within a key retracement area between the 50% and 61.8% Fibonacci levels, which often serves as a medium-term accumulation zone.

Technical conditions are beginning to improve. On the weekly charts, the RSI has broken out of a triangle pattern, signaling a shift in momentum. Price action has also confirmed a falling trendline breakout, suggesting a potential trend reversal after a prolonged decline.

Patel recommends adopting a long-bias approach, suggesting accumulation in the ₹5,430–5,250 range, with an upside target of ₹6,800 and a stop loss at ₹4,600 on a daily closing basis.

• Coal India**
• Previous close: ₹385.60
• Target price: ₹470
• Stop loss: ₹336
• Upside potential: 22%

Coal India has been consolidating for approximately 10–12 months, primarily trading between ₹370 and ₹400, according to Patel. Throughout this period, momentum has remained stable, with the RSI consistently above 40, indicating that selling pressure has been well-absorbed despite the sideways price movement.

The stock recently broke above its previous swing high, potentially signaling the end of consolidation and the start of a new upward trend. This breakout improves the risk-reward profile, supported by consistent volume and a strengthening price structure.

Patel suggests accumulating Coal India in the ₹386–376 range, with a target price of ₹470 and a stop loss at ₹336 on a daily closing basis. This outlook remains positive as long as the stock stays above its breakout zone and the broader market sentiment remains supportive.

• Rail Vikas Nigam (RVNL)**
• Previous close: ₹319.15
• Target price: ₹390
• Stop loss: ₹277
• Upside potential: 22%

According to Patel, RVNL has formed a bullish Bat pattern near the ₹300–305 zone, which has consistently acted as a price cushion since August 2023, making it a crucial support area for the stock.

Furthermore, a falling trendline support is evident on both price action and the RSI, indicating that downward momentum is weakening and buyers are starting to respond at lower levels.

These converging technical signals strengthen the argument for a potential rebound from the current support level.

Patel advises initiating long positions in the ₹320–310 accumulation zone, targeting an upside near ₹390, with a stop loss at ₹277 on a daily closing basis.

*Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views and recommendations expressed are those of the expert and do not represent the views of Scoopliner.com. Investors should consult with qualified financial advisors before making any investment decisions, as market conditions are subject to change and individual circumstances may vary.*