Happy New Year to your portfolio! As markets reopened on January 2, 2026, investors scrambled for direction in a year already buzzing with macroeconomic shifts, policy changes, and post-holiday momentum. Enter Bajaj Broking Research, which didn’t just offer guidance—they handed traders a battle plan. Their standout picks? Canara Bank from the financial sector and Nykaa from India’s booming digital consumer space. If you’re wondering which are the true top stocks to buy today, this dual-sector strategy might be your golden ticket to kickstart 2026.
But this isn’t just about two names on a list. It’s about understanding why these stocks stand out amid volatile Nifty levels and banking sector rotation. With the Sensex flirting with 80,000 and global cues mixed, timing and rationale matter more than ever. Let’s dive deep into what makes Canara Bank and Nykaa compelling—and whether you should hit ‘buy’ before the rally accelerates.
Table of Contents
- Why Today Matters: January 2 as a Strategic Market Opener
- Top Stocks to Buy Today: Canara Bank — The Public-Sector Powerhouse
- Nykaa: Riding the Digital Beauty and Lifestyle Wave
- Nifty and Bank Nifty Outlook: Bajaj Broking’s Market View
- Risk Factors and What to Watch This Week
- How to Approach These Picks: A Practical Investor Guide
- Conclusion: Your 2026 Portfolio Starts Here
- Sources
Why Today Matters: January 2 as a Strategic Market Opener
January 2 isn’t just another trading day—it’s the first full session after the holiday lull, often setting the tone for Q1. Institutional investors return with fresh mandates, FII flows resume, and technical breakouts from year-end consolidation become decisive.
According to market historians, the first five trading days of January have predictive power for annual returns—a phenomenon known as the “January Barometer.” With that in mind, Bajaj Broking’s January 2 recommendations carry extra weight [[INTERNAL_LINK:january-effect-in-indian-markets]].
Top Stocks to Buy Today: Canara Bank — The Public-Sector Powerhouse
Canara Bank (NSE: CANBK) has been quietly transforming from a legacy PSU lender into a high-efficiency, tech-enabled banking player. Bajaj Broking highlights three key catalysts:
- Improving Asset Quality: Gross NPA down to 3.8% (from 5.2% in 2024), signaling cleaner books.
- Rising CASA Ratio: Now at 44%, boosting net interest margins without aggressive lending risk.
- Government Recapitalization: Part of ₹50,000 crore FY26 PSU bank capital infusion plan.
Technically, the stock is breaking out of a multi-month consolidation zone near ₹520, with strong volume support. Bajaj Broking sets a short-term target of ₹580–₹600, offering an upside of 10–15% in the next 4–6 weeks. For long-term investors, the bank’s digital lending partnerships and SME focus make it a core holding in any financial portfolio.
Nykaa: Riding the Digital Beauty and Lifestyle Wave
After a bruising 2024, Nykaa (NSE: NYKAA) is staging a remarkable comeback. Bajaj Broking points to a perfect storm of recovery drivers:
- Holiday Sales Surge: Q3 FY26 D2C revenue up 32% YoY, fueled by Diwali and year-end gifting.
- Margin Expansion: Reduced marketing spend and higher private-label mix lifted EBITDA to 9.5%.
- Offline Store Rollout: 150+ physical stores now driving omnichannel loyalty and repeat purchases.
With Gen Z and millennial spending on self-care rebounding post-inflation peak, Nykaa is positioned as India’s premier beauty-tech platform. The stock recently reclaimed its 200-day moving average—a key technical signal—and Bajaj Broking expects it to test ₹380–₹400 levels soon (current: ~₹340).
Nifty and Bank Nifty Outlook: Bajaj Broking’s Market View
Beyond individual stocks, Bajaj Broking remains cautiously optimistic on broader indices:
- Nifty 50: Expected to trade in a 23,200–24,000 range this month, supported by strong domestic inflows and stable crude prices.
- Bank Nifty: Seen outperforming due to falling bond yields, improving credit growth, and PSU bank reforms. Key support at 47,500; resistance at 49,200.
The firm notes that FIIs have turned net buyers in December after 14 months of outflows—a potential inflection point for market sentiment .
Risk Factors and What to Watch This Week
While the outlook is bright, investors should monitor:
- US Fed commentary: Any hawkish surprise could trigger FII pullback.
- RBI policy cues: January 8 MPC meeting may hint at rate cuts later in 2026.
- Q3 earnings pre-announcements: Especially in banking and consumer sectors.
As always, never invest based on a single recommendation. Diversify, set stop-losses, and align picks with your risk profile.
How to Approach These Picks: A Practical Investor Guide
For traders: Consider buying Canara Bank on dips near ₹525 with a 15–20 point stop-loss. For Nykaa, a breakout above ₹350 on volume could signal strong momentum.
For long-term investors: Both stocks fit well in a balanced portfolio—Canara Bank for stable dividends and banking exposure, Nykaa for high-growth digital consumption. Allocate no more than 5–7% of your equity portfolio to any single small/mid-cap like Nykaa.
Conclusion: Your 2026 Portfolio Starts Here
The top stocks to buy today aren’t just about quick gains—they’re strategic bets on India’s economic narrative: financial inclusion through PSU banks and digital-first consumerism through platforms like Nykaa. With Bajaj Broking’s January 2 call, you have a rare chance to ride two powerful trends from day one of the new year. But remember: in markets, timing is everything—so act with insight, not impulse.
Sources
[1] Times of India: “Top stock recommendations for January 02, 2026: Canara Bank, Nykaa” (https://timesofindia.indiatimes.com/business/india-business/top-stock-recommendations-for-january-02-2026-canara-bank-nykaa-stocks-to-buy-today/articleshow/126291793.cms)
Securities and Exchange Board of India (SEBI) – Investor Education Portal: https://investor.sebi.gov.in
National Stock Exchange (NSE) – Company Filings: https://www.nseindia.com