Top three stocks to buy today—recommended by Ankush Bajaj for 5 January
Market expert Ankush Bajaj recommends three stocks to buy on Saturday, 3 January.
On Friday, 2 January, the Indian equity market closed the week on a constructive note, reflecting renewed buying interest and a positive undertone across key indices.
The Nifty 50 advanced by 182.00 points or 0.70% to settle at 26,328.55, while the Sensex climbed 573.41 points or 0.67% to close at 85,762.01, signaling improved sentiment as markets attempted to regain stability after recent volatility.
Banking stocks contributed meaningfully to the upside, with the Bank Nifty rising 439.40 points or 0.74% to end at 60,150.95, indicating selective accumulation in financial counters following a consolidation phase.
Three stocks to buy today, Ankush Bajaj’s recommendations
Buy: Coal India Ltd.
Why it’s recommended: Coal India is displaying strong bullish momentum amid renewed interest in the energy and PSU space. The stock is trading well above key support levels and benefiting from the broader rally in commodity-related counters. The daily RSI at 82 indicates robust positive momentum, though approaching overbought territory, while the MACD at +7 confirms a solid positive crossover, supporting continued upside. The ADX at 28 reflects a developing yet convincing trend strength, pointing to potential for further gains in the ongoing upmove.
Key metrics: RSI (14-day): 82 — strong bullish momentum
MACD (12,26): +7 — positive crossover
ADX (14): 28 — trend gaining strength
Technical view: Holding above ₹421 keeps the uptrend intact, with an upside target of ₹445.
Risk factors: The stock remains sensitive to global coal price fluctuations, energy policy changes, and seasonal demand variations.
Buy at: ₹427.90
Target price: ₹445
Stop loss: ₹421
Buy: MCX (Multi Commodity Exchange of India Ltd.)
Why it’s recommended: MCX is exhibiting healthy bullish momentum driven by increased trading volumes and positive sentiment in the financial services sector. The stock is consolidating above support zones with signs of resumption in the uptrend. The daily RSI at 66 suggests solid positive momentum that is not yet overbought, while the MACD at +64 shows a strong positive crossover, reinforcing the bullish bias. The ADX at 26 indicates a strengthening trend, signaling scope for further upside as momentum builds.
Key metrics: RSI (14-day): 66 — bullish momentum
MACD (12,26): +64 — positive crossover
ADX (14): 26 — trend in motion
Technical view: Holding above ₹2188 supports continuation of the uptrend, with an upside target of ₹2270.
Risk factors: Vulnerable to regulatory changes in commodity trading, volatility in exchange volumes, and broader market sentiment on financial stocks.
Buy at: ₹2216
Target price: ₹2270
Stop loss: ₹2188
Buy: NMDC Ltd.
Why it’s recommended: NMDC is showing renewed bullish momentum as part of the ongoing metals sector recovery. The stock has held firmly above short-term supports and is witnessing steady accumulation. The daily RSI at 70 reflects strong positive momentum, while the MACD at +2 confirms a fresh positive crossover, supporting the bullish outlook. The ADX at 23 suggests an emerging trend that could gain further strength with sustained buying.
Key metrics: RSI (14-day): 70 — strong bullish momentum
MACD (12,26): +2 — positive crossover
ADX (14): 23 — developing trend strength
Technical view: Holding above ₹82.8 keeps the uptrend valid, with an upside target of ₹88.
Risk factors: Subject to fluctuations in global iron ore prices, mining policy updates, and export demand dynamics.
Buy at: ₹84.5
Target price: ₹88
Stop loss: ₹82.8
Market Wrap – 5 Jan 2026, Monday
Sectoral performance remained supportive, led by the PSE index, which surged 2.29%, followed by strong gains in the energy index up 2.16% and the realty index higher by 1.52%, reinforcing the broader market strength. On the downside, FMCG emerged as the sole laggard, slipping 1.19%.
At the stock level, buying interest was evident in select names, with Coal India rallying 6.85%, NTPC gaining 4.70%, and Hindalco advancing 3.44%. However, some heavyweight stocks witnessed profit booking, as ITC declined 3.79%, Nestle India eased 1.18%, and Kotak Bank slipped 1.02%, marginally moderating the overall market momentum toward the close.
Nifty Technical Outlook
The Nifty 50 index closed at a fresh all-time high of 26,328.55 on January 2, 2026, marking a strong gain of 182 points or 0.70% and reflecting a decisive breakout from the consolidation and hesitation seen in late December 2025. This upward move has shifted the short-term bias firmly bullish, overcoming the previous overhead supply near the 26,100-26,200 zone and invalidating the mild corrective phase observed earlier.
On the daily timeframe, the index is now trading comfortably above all key moving averages, reinforcing the primary uptrend. It sits well above the 20-day simple moving average around 26,150, which now acts as immediate support, while the 50-day SMA near 25,980 and the 200-day SMA around 24,800 provide deeper structural support. The 20-day and 40-day exponential moving averages, positioned near 26,180 and 26,020 respectively, have also been reclaimed convincingly. Momentum indicators are aligning positively: the 14-period RSI has risen to 62, indicating healthy bullish momentum with ample room to run before reaching overbought territory.
The MACD shows a widening positive histogram around +120, confirming accelerating upside traction compared to the +52 reading in late December. The ADX at 28 signals a strengthening trend, while the stochastic oscillator, though in overbought territory at 88/82, continues to hold firm without immediate divergence.
Volume has expanded noticeably during this breakout, adding conviction to the move. Key support lies at 26,200-26,100 (coinciding with prior resistance and the 20-DMA), with a deeper fallback zone around 25,980-25,900. On the upside, the next meaningful targets are 26,500 and 26,700, driven by psychological levels and extended Fibonacci projections. As long as the index holds above 26,100 on a closing basis, the daily chart maintains a strong bullish outlook with limited downside risk.
Shifting to the hourly timeframe, the price action paints a picture of steady accumulation and reduced intraday volatility in favor of buyers. The index has formed a series of higher lows since the late-December weakness and is now trading above its short-term averages, including the 20-hour MA near 26,280 and the 40-hour MA around 26,220. This represents a clear reclamation from the bearish setup seen on December 27 when the index was below these levels. The hourly RSI stands at 65, comfortably in bullish territory and a significant improvement from the oversold reading of 40 previously, while the MACD displays a positive and expanding histogram.
The ADX is rising toward 25, confirming that an intraday uptrend is gaining traction. Intraday dips have been shallow and quickly absorbed, indicating strong demand on pullbacks. Immediate support on this timeframe is at 26,280 followed by 26,220, with any breach of 26,200 potentially inviting a quicker correction toward 26,100. Resistance is seen first at 26,400, where option call buildup is notable, and then at 26,500. The hourly structure fully supports the daily bullish bias and suggests potential for continuation higher in the near term, particularly if the index sustains above 26,340 in upcoming sessions.
Overall, both daily and hourly charts are in alignment, favoring buyers with momentum indicators turning increasingly positive and price action breaking key resistances. The broader uptrend remains intact, and the recent breakout has shifted focus toward higher levels around 26,500-26,700 over the coming weeks, provided key supports at 26,200-26,100 hold firm. Any failure to defend these levels would be required to alter the constructive outlook, but current evidence points to limited corrective potential and a favorable risk-reward setup for upside participation.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
Investments in securities are subject to market risks. Read all the related documents carefully before investing.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
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