Reliance Industries Ltd (RIL), Bharat Electronics Ltd (BEL) and Bajaj Finance Ltd are among Kotak Neo's top five technical picks for Diwali 2026. The other two are ICICI Bank Ltd and JSW Steel Ltd, as the brokerage's preference remains firmly tilted toward quality large cap stocks, particularly for investors with a medium-to long-term horizon.
Rather than attempting to time the exact market bottom, Kotak Neo said investors should use periods of volatility to systematically build positions in fundamentally strong businesses.
"Overall, this Diwali, our approach is one of buy on dips. Volatility may remain elevated and the market may take time to establish a durable uptrend, but meaningful corrections should increasingly be viewed as opportunities to accumulate quality stocks rather than reasons to exit the market," the brokerage said.
For the coming year, the brokerage expects the Nifty to remain in a broad consolidation phase within the 21,700–26,300 range, before establishing a stronger directional trend. On the downside, the 22,100–21,700 zone is seen as a crucial support area.
Over the past few months, the BEL stock has consistently witnessed selling pressure at higher levels, resulting in a correction of more than 20 per cent from its all-time high. Following this prolonged decline, the stock is now trading near a crucial retracement support zone, which could provide a base for a potential recovery, Kotak Neo said.
"Moreover, the daily chart and momentum indicators are showing oversold conditions, suggesting that downside momentum may be losing strength and the stock could be poised for a meaningful rebound. For contrarian traders, Rs 340 would act as a key support level. As long as the stock sustains above this level, the possibility of a recovery toward Rs 410 remains strong. We recommend a staggered buying approach, with 50 per cent of the position initiated at current levels and the remaining 50 per cent accumulated near Rs 350, Kotak Neo said.
It advised traders to keep stop-loss at Rs 340 to manage downside risk.
RIL share price target Over the last few months, the RIL stock has consistently faced selling pressure at higher levels. From its all-time high, the stock has corrected by over 25 per cent. Technically, after a prolonged correction, the RIL stock is currently trading near an important support zone, and momentum indicators also indicate a strong possibility of a fresh uptrend from the current levels, Kotak Neo said.
"We are of the view that the stock has completed its corrective wave, and we could expect a fresh uptrend from the current levels. Considering the overall technical setup, positional traders may maintain a positive bias, with targets of Rs 1,400. Fresh buying can be considered at current levels, with further accumulation on declines toward Rs 1,100. A stop-loss below 1050 is recommended to manage downside risk," Kotak said.
Bajaj Finance share price target
Over the past couple of months, the Bajaj Finance stock has witnessed sustained selling pressure at higher levels and has corrected by more than 20 per cent from its peak. Following this prolonged correction, the stock is now trading near its 200-day SMA, an important long-term technical support.
"At the same time, momentum indicators are showing early signs of recovery, suggesting the possibility of a trend reversal from current levels," said Kotak Neo.
Considering the overall technical setup, the Bajaj Finance stock offers an attractive buying opportunity for positional traders, with a favorable risk-reward profile, the domestic brokerage said.
"A sustained reversal could take the stock toward Rs 1,200 in the coming period. We recommend adopting a staggered accumulation strategy, with 50 per cent of the position initiated at current levels and the remaining 50 per cent added near Rs 850. A stop-loss at Rs 770 should be maintained to manage downside risk," it said.
ICICI Bank share price target Following a short-term correction, the ICICI Bank stock found strong support near Rs 1,300 and staged a sharp recovery. It is now trading comfortably above its 20-day and 200-day SMAs, reinforcing the positive technical setup, Kotak Neo said.
"The price structure and momentum indicators suggest that the recovery has further room to extend, with the broader uptrend likely to continue over the medium term. As long as the stock sustains above 1200, positional traders may maintain a positive bias and look for a target of Rs 1,800. Fresh buying can be considered at current levels and on declines toward the Rs 1,400 to Rs 1,300 zone, Kotak Neo said.
A stop-loss below Rs 1,200 is recommended to manage downside risk, it said.
JSW Steel share price target Kotak Neo said the JSW Steel stock has corrected by more than 13 per cent from its all-time high over the past couple of months and is now approaching an important technical support zone. On the daily chart, it is trading near a key retracement level, suggesting the potential for a short-term trend reversal, the domestic brokerage said.
"Encouragingly, the stock continues to maintain a higher-bottom formation on the weekly chart, reinforcing the broader positive structure and supporting accumulation near crucial support levels," Kotak Neo said.
Considering the overall technical setup, it advised positional traders to maintain a positive bias, with target of Rs 1,475. Kotak Neo said fresh buying can be considered at current levels, with further accumulation on declines toward Rs 1,200.
A stop-loss below Rs 1,150 is recommended to manage downside risk, it said.