Diwali Stock Picks 2026: Angel one List 8 Stocks With Up To 32% Upside as Nifty Valuations Cool

Market has entered into a pre diwali rally with sensex and nifty surging sharply. As of 10 am this morning The BSE Sensex jumped 1,486.39 points to 78,787.79, and the Nifty surged 415.75 points to 24,376.35. Nifty is up around 2.00% in November

Muhurat Trading will be conducted on the day of diwali and Angel One Research has pointed eight stocks for the festive season in its Shagun Ke Shares Diwali Picks Report.

The brokerage in its report said, "The Nifty is down about 13.4% so far in 2026 and FPIs have pulled out Rs. 3.04 lakh crore from Indian equities, against Rs. 1.66 lakh crore in all of 2025. What has held the market up is domestic money. DIIs have put Rs. 6.21 lakh crore into stocks this year, and monthly SIP inflows hit a record Rs. 32,490 crore in September."

ICICI Bank and Northern Arc

ICICI Bank is the only large-cap on the list, with a target price of Rs.1,800 against a CMP of Rs. 1,363, based on 18.8x FY29E EPS of Rs. 95.7. In Q2 FY27, standalone PAT rose 20.1% YoY to Rs. 14,843 crore and NII grew 17.7% to Rs. 25,339 crore, while gross NPA fell to 1.20% and net NPA to 0.30%.

The soft spot is margins. NIM eased to 4.18% from 4.36% in Q1 after the bank raised about $18 billion of FCNR(B) deposits, and management expects some further moderation in Q3 before a recovery from Q4 as the funds are deployed.

Northern Arc Capital, at Rs. 255 with a target of Rs. 330, is the smaller financial bet. The lender to underserved households and businesses grew lending AUM 26% YoY to Rs. 16,855 crore, and its direct-to-customer book has crossed Rs. 10,000 crore.

Pharma, gold and industrials

Aarti Pharmalabs gets a Buy with a target of Rs. 1,160 against Rs. 879, valued at 24x FY29E EPS of Rs. 48. India's largest maker of xanthine derivatives reported Q1 FY27 revenue up 38.7% YoY to Rs. 536 crore and net profit up 65.4% to Rs. 76.1 crore.

Shanti Gold International, a B2B maker of gold jewellery for organised retailers, is up for Rs. 410 from Rs. 316. Q1 FY27 revenue grew 145% YoY to Rs. 716 crore and PAT rose 47% to Rs. 50.5 crore, with volumes up 61.6%. Management has guided to 50% to 60% revenue growth this year as new capacity comes on stream.

Ratnaveer Precision Engineering, India's largest producer of stainless-steel washers, has a Rs.400 target against Rs. 344, the second-smallest upside on the list. Q1 FY27 revenue rose 18.9% YoY to Rs. 314.6 crore and PAT grew 22% to Rs. 18.2 crore. The swing factor is a new copper clad laminate project, due to begin commercial production in November 2026, which would push the company into electronics materials. The stock has roughly doubled in a year, and a Rs. 330 crore rights issue will dilute near-term ROE until the project ramps up.

Engineers India, at Rs. 248 with a target of Rs. 320, benefits from a shift towards higher-margin consultancy work. Consultancy made up 62% of Q1 FY27 revenue, lifting EBITDA margin to 18.6% from 11.7% and standalone PAT 55% YoY to Rs. 109 crore.

Real estate and defence

AGI Infra, a Jalandhar-based developer focused on Punjab and Tier-II cities, is quoted at Rs. 221 with a target of Rs. 285. FY26 PAT rose 42% to Rs. 95 crore with EBITDA margin at about 35%, and Q1 FY27 PAT rose 38% YoY to Rs. 28 crore even though revenue grew only 5%. The stock is about 50% below its 52-week high of Rs. 434, but working-capital days have stretched to about 211 and operating cash flow was negative in FY26.

Apollo Micro Systems offers the smallest upside at 15%, with a target of Rs. 475 against Rs. 415. It is a repeat call, since Angel One had earlier recommended the stock at Rs. 385. In Q2 FY27, consolidated revenue rose 72% YoY to Rs. 388 crore, EBITDA rose 88% to Rs. 111 crore at a 28.6% margin and PAT rose 54% to Rs. 46 crore, with a record order book of Rs. 1,765 crore.

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