Stocks To Buy Today, Jan 2: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Friday

Nifty added 16 points to close at 26,146, extending its winning run for the second day in a row. The markets were muted at the start of the New Year's first trading session and remained mostly unchanged at the finish. The Nifty Midcap 100 increased 0.45% while the Nifty Smallcap 100 slightly down by 0.05% in the overall market. With an advance-decline ratio of 1.14 on the BSE, market breadth continued to be positive for the second straight day. Following a strong start, the Nifty saw mixed movements among heavyweight stocks during the session, moving within a small range.

Nifty Outlook Today

"Technically, a sustained move above 26,234 could signal a breakout from the current consolidation phase and open the door for a retest of all-time highs and potentially higher levels. On the downside, the 25,900 zone is expected to act as immediate short-term support for the index," commented Nandish Shah - Deputy Vice President, HDFC Securities.

"A small negative candle was formed on the daily chart and Nifty is currently resisting at the down sloping trend line around 26200 levels. Having formed a new higher bottom reversal pattern recently at 25878, the market is expected move up further and break decisively above the hurdle of 26200 levels after 1-2 sessions of consolidation movement. The near-term uptrend of Nifty remains intact. After a smaller consolidation movement near 26100-26200 levels in the short term, the Nifty is expected to show sharp breakout towards 26300-26400 levels in the near term. Immediate support is placed at 26050," commented Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

Stocks To Buy Today

Technical analyst Riyank Arora of Mehta Equities Ltd. recommended buying two stocks for lucrative trading on Friday, January 2.

Muthoot Finance

Buy | CMP: Rs 3,839.00 | SL: Rs 3,700 | Target: Rs 3,980 / Rs 4,120

Muthoot Finance maintains a strong bullish structure after a shallow consolidation. The stock is witnessing accumulation on minor dips, keeping the broader uptrend intact. RSI remains positively placed, suggesting continuation of strength. A move above ₹3,880 may lead to targets of ₹3,980 and ₹4,120. SL placed at ₹3,700.

Reliance Industries

Buy | CMP: Rs 1,575.60 | SL: Rs 1,530 | Target: Rs 1,625 / Rs 1,665

Reliance Industries is forming a stable base above its key support near ₹1,530. Price action indicates gradual accumulation, while momentum indicators are turning positive. A sustained move above ₹1,585 can trigger the next upside leg toward ₹1,625 and ₹1,665. Maintain SL at ₹1,530.

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