Stocks to buy: What’s the outlook for Nifty for the week starting January 12, 2026? Check list of top stock recommendations

Stock market recommendations: According to Sudeep Shah, Head – Technical Research and Derivatives, SBI Securities, the top stock picks for this week are Alkem Laboratories, and MTAR Technologies. Here’s his view on Nifty, Bank Nifty for the week starting January 12, 2026:Nifty View:Last week began on a euphoric note as the Nifty scaled a fresh all-time high on Monday, but the optimism proved short-lived. The index reversed sharply thereafter, ending the week with a steep correction of nearly 2.5%—its sharpest weekly decline since September 2025. Even more telling was the nature of the fall: over the last four trading sessions, Nifty opened with a gap-down every single day, clearly reflecting sustained selling pressure. While the bulk of the damage occurred in the final two sessions, the bigger question now is—was this merely a healthy pullback, or the early signal of a deeper trend reversal?Technically, the damage is hard to ignore. Nifty has confirmed a neckline breakdown of an Adam & Adam Double Top pattern, a development that significantly alters the near-term risk profile. Adding to the concern, the index has slipped decisively below its 20-day and 50-day EMA, with the 50-day EMA—an important support that had held firm on four occasions since October 2025—finally giving way. Prices are now hovering near the 100-day EMA, while momentum indicators have weakened meaningfully. The daily RSI has slipped below the 40 mark for the first time since September 2025 and continues to trend lower—a combination that typically precedes further downside rather than an immediate bounce.This evolving chart structure suggests that bearish momentum may persist in the near term. From a levels perspective, the 25,500–25,450 zone stands out as immediate support, and any sustainable move below 25,450 could pave the way for a sharper decline towards 25,200 in the short run. On the upside, recovery attempts are likely to face strong supply in the 25,900–25,950 zone, making any rebound technically challenging.Importantly, the weakness is not confined to the frontline index alone. Broader markets are also showing visible stress, with the Nifty Midcap 100 slipping below its 20-day and 50-day EMA, while the Nifty Smallcap 100 is now trading below all its key moving averages. This broad-based deterioration signals a clear cooling of risk appetite, underscoring the need for a cautious, defensive, and highly selective approach in the sessions ahead.Bank Nifty ViewLast week, the banking benchmark Bank Nifty managed to outperform the frontline indices, even as it closed lower by nearly 1.5%, markedly less than the sharp correction seen across broader markets. However, beneath this relative outperformance, the weekly chart has flashed a clear warning sign. The formation of a Dark Cloud Cover candlestick pattern points to a potential shift in market psychology, where bullish dominance may be giving way to emerging bearish pressure.The near-term technical setup adds to this cautious undertone. Bank Nifty has slipped below its 20-day EMA, indicating short-term weakness, while momentum indicators are steadily losing strength. The daily RSI has crossed below its 9-day average, with both lines trending downward, suggesting waning buying interest. Additionally, the fast stochastic has slipped below the slow stochastic line, reinforcing the view that upside momentum may remain capped in the near term.From a levels perspective, the 58,700–58,600 zone emerges as a crucial support area, coinciding with the recent swing low. Any sustained break below 58,600 could intensify selling pressure and drag the index towards 58,000, followed by 57,500 in the short term. On the upside, recovery attempts are likely to face stiff resistance in the 59,700–59,800 zone, and only a decisive breakout above this band would signal a revival in bullish momentum.

Stock recommendations:

Alkem Laboratories LtdALKEM has confirmed a downward-sloping trendline breakout, which was followed by a strong follow-through move, signaling a clear shift in price structure. The RSI has rebounded sharply from 37 on 30th December to 63, reflecting a strong recovery in bullish momentum. The ADX is rising, indicating that the new uptrend is gaining strength, while the expanding green histogram bars on the MACD suggest accelerating upside momentum and increasing buying pressure.With price action turning positive and both momentum indicators and oscillators aligning on the bullish side, the stock is well positioned to outperform and continue moving higher in the near term. Hence, we recommend to accumulate the stock in the zone of 5,800-5,790 with a stoploss of 5,620. On the upside, it is likely to test the level of 6,200 in the short term.MTAR Technologies LtdMTARTECH has repeatedly taken support at its 50-day EMA, which continues to act as a strong dynamic base for the stock. It recently moved above its previous swing high of 2,719 and despite closing slightly off the highs, posted a sharp nearly 7% rally backed by a noticeable surge in volumes, signalling strong participation. The RSI is in a rising mode and has settled just below 70, indicating strengthening bullish momentum, while the MACD line has crossed above the zero line with expanding histogram bars, reflecting improving trend strength.Overall, the setup points to a continuation of the up move in the short term. Hence, we recommend to accumulate the stock in the zone of 2,690-2,680 with a stoploss of 2,605. On the upside, it is likely to test the level of 2,875 in the short term.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)