Stocks to buy for long term: From Coal India to RVNL— Jigar Patel of Anand Rathi suggests 5 shares to buy for 2026

Stocks to buy for the long term: The Indian stock market is ending the year with modest gains amid a confluence of headwinds and tailwinds. While robust buying by domestic institutional investors (DIIs) amid favourable growth-inflation dynamics has kept the market in the green zone, heavy outflow of foreign capital amid stretched earnings, delayed India-US trade deal, weak earnings, and the Indian rupee's weakness have limited the gains.

The Nifty 50 has gained over 9%, while the broader Nifty 500 index has clocked a gain of over 5% this year so far. Stocks like Force Motors (up 173%) and L&T Finance (up 122%) have given multibagger returns in the Nifty 500 index, while shares of Tejas Networks (down 62%), and Ola Electric (down 60%) have suffered losses of more than 50% this year so far.

Experts say in the coming year, the market will reward stock-pickers than those who bet aggressively on most sectors and random stocks. While they see plenty of opportunities in several sectors, they suggest picking quality stocks with healthy fundamentals and sound technical indicators for the next year.

Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, suggests five stocks to buy for 2026. Let's take a look:

Stocks to buy for the long term

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

According to Patel, Birlasoft is forming a double-bottom structure on the weekly chart near the 61.8% Fibonacci retracement level, measured from the COVID lows to the January 2024 rally.

This area has acted as a strong demand zone, helping the stock halt its corrective slide.

Momentum indicators are also turning favourable—weekly RSI is showing bullish divergence and has crossed above its previous swing high, signalling improvement in underlying strength and a potential trend reversal.

"Given these technical signals, a gradual accumulation strategy is recommended. Traders may consider buying in the ₹435–415 zone, looking for an upside target near ₹600. Risk should be controlled with a stop loss placed below ₹335 on a daily closing basis," said Patel.

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

Patel underscored that over the past year, Praj Industries has corrected nearly 67%, bringing the price back toward a critical demand zone near the ₹300 mark—a support area respected in 2022 and 2023, as reflected in the charts.

In recent sessions, the stock has witnessed strong buying interest accompanied by a sharp surge in volumes, signalling renewed accumulation.

Technically, the S2 floor yearly pivot aligns with the same ₹300 support, strengthening its significance.

The weekly RSI has also completed an impulsive V-shaped recovery, indicating a positive momentum shift after a prolonged decline.

"Given this confluence of price support, volume strength, and momentum improvement, we recommend staggered buying in the ₹345–330 zone for an upside target of ₹440, while maintaining a stop loss at ₹290 on a daily closing basis," said Patel.

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

Patel highlighted that Tata Elxsi has been in a gradual corrective phase since 2022, resulting in a drawdown of nearly 56% from its peak.

The stock is now trading within a key retracement pocket between the 50% and 61.8% Fibonacci levels, an area that often acts as a medium-term accumulation zone.

Technical conditions are beginning to improve as well. On the weekly charts, the RSI has broken out of a triangle pattern, indicating a momentum shift, while price action has confirmed a falling-trendline breakout—both signalling a potential trend reversal after a prolonged decline.

"Given these developments, a long-bias approach is recommended. Traders may consider accumulating in the ₹5,430–5,250 zone, with an upside target of ₹6,800. Risk can be contained with a stop loss at ₹4,600 on a daily closing basis," said Patel.

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

Patel said Coal India has been in a prolonged consolidation phase for nearly 10–12 months, largely trading within the ₹370–400 band.

Throughout this period, momentum has remained stable, with the RSI consistently holding above the 40 level, indicating that bearish pressure has been well absorbed despite the sideways price action.

Recently, the stock has broken above its previous swing high, signalling a potential end to consolidation and the beginning of a fresh upward phase. The breakout also improves the risk-reward setup, supported by steady volume behaviour and strengthening price structure.

"Given these technical developments, traders may consider accumulating Coal India in the ₹386–376 zone. The upside potential is seen toward ₹470, while risk can be managed with a stop loss at ₹336 on a daily closing basis. This view remains constructive as long as the stock sustains above its breakout zone and broader market sentiment stays supportive," said Patel.

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

Patel said RVNL has formed a bullish Bat pattern near the ₹300–305 zone. This region has consistently acted as a price cushion since August 2025, making it a critical support area for the stock.

In addition, a falling trendline support is visible on both price action and RSI, indicating that downside momentum is easing and buyers are beginning to respond at lower levels.

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

"Given this setup, traders may consider initiating long positions in the ₹320–310 accumulation zone, looking for an upside target near ₹390. Risk should be controlled with a stop loss at ₹277 on a daily closing basis," said Patel.

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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of the expert, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.