On January 1, 2026, MarketSmith India, a stock research platform known for its CAN SLIM methodology, provided its latest stock recommendations. The Indian equity benchmarks concluded the final session of 2025 on a firm note, recovering from a four-day losing streak due to value buying across sectors.

Market Overview

On the last trading day of 2025, the Nifty 50 index advanced by 190.75 points (0.74%) to close at 26,129.60, while the S&P BSE Sensex rose by 545.52 points (0.64%) to settle at 85,220.60. Market sentiment was largely driven by the metal sector, which saw gains following the government's announcement of a three-year import tariff on select steel products aimed at curbing cheap shipments from China.

Top Stock Picks

MarketSmith India's stock recommendations include:

• Hindalco Industries Ltd: MarketSmith India suggests buying Hindalco Industries Ltd, with the stock currently priced at ₹886. The recommendation is based on Hindalco's strong position in the aluminum and copper value chain, Novelis's leadership in global aluminum flat-rolled products, and its potential to benefit from infrastructure, electric vehicle (EV), and renewable energy demand. The company is also improving operating efficiencies and cost control, with a healthy balance sheet and cash flow generation, and long-term capital expenditure supporting capacity and value-added products. Key metrics include a P/E ratio of 11.47, a 52-week high of ₹890, and a volume of ₹313.64 crore. Technical analysis indicates a cup base pattern breakout. The recommended buy range is ₹880–892, with a target price of ₹980 and a stop loss at a level that protects the investment. However, earnings are sensitive to global commodity price cycles and fluctuations in aluminum and copper prices. The company also faces high dependence on global demand, especially from the U.S. and Europe, rising energy and raw material costs that can pressure margins, and regulatory and environmental compliance risks.
• Colgate-Palmolive (India) Ltd: Motilal Oswal suggests buying Colgate-Palmolive (India) Ltd. The current price is ₹2,508, and it is recommended to buy at ₹2,508 with a target price of ₹2,890 in three months and a stop loss at ₹2,310.
• United Spirits: Motilal Oswal suggests buying United Spirits. The current price is ₹ 1,451, and it is recommended to buy at ₹1,451 with a target price of ₹1,650 in three months and a stop loss at ₹1,370.

Other Stocks in Focus

In addition to the above, MarketSmith India had recently recommended:

• Karur Vysya Bank: Citing its strong South Indian franchise, improving asset quality, and digital initiatives.
• V.S.T Tillers Tractors: Noting its leadership in power tillers, debt-free status, and consistent demand. The recommended buy range is ₹6,000–6,100, with a target price of ₹6,700 in two to three months and a stop loss at ₹5,700.
• FSN E-Commerce Ventures Ltd (Nykaa): The company boasts an asset-light, omnichannel business model, a growing share in online beauty retail, and expanding private labels. The recommended buy range is ₹262–₹268, with a target price of ₹298 within two to three months and a stop loss set at ₹248.
• Choice International Ltd: The recommended buy range is ₹820–₹840, with a target price of ₹920 in two to three months and a stop loss at ₹790.
• Hikal Ltd: Current market price ₹403.75 | Buy at ₹395-405 | Profit goal ₹475 | Stop loss ₹365 | Timeframe 2-3 months.
• Shilpa Medicare Ltd: Current market price ₹873.25 | Buy at ₹860-875 | Profit goal ₹1,040 | Stop loss ₹808 | Timeframe 2-3 months.
• Azad Engineering Ltd: Current market price ₹1,579.05 | Buy at ₹1,550-1,580 | Profit goal ₹1890 | Stop loss ₹1,427 | Timeframe 1-2 months.

Market Analysis and Outlook

The overall market breadth was positive, with mid-cap and small-cap indices outperforming the front liners. While thin year-end volumes and sustained Foreign Institutional Investor (FII) outflows remained headwinds throughout December, the session highlighted resilient domestic liquidity.

Looking ahead, the focus shifts to the Q3 corporate earnings season and January auto sales data, which will be critical in determining whether the current rebound can be sustained.

Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Investors are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions.