Stocks to buy for long term: ITC, HDFC Bank, Tata Motors shares among top 5 stock picks for FY26 by Rahul Ghose

The Indian stock market slumped on Tuesday, with both the benchmark indices - Sensex and Nifty 50 - crashing nearly two percent each, beginning the new financial year 2025-2026 on a weak note. Heightened uncertainty over the US President Donald Trump’s impending reciprocal tariffs weighed on market sentiment globally.

Despite the recent correction in the domestic equities, the benchmark Nifty 50 index demonstrated resilience and ended FY25 with a gain of 5.34%. This recovery was notably driven by a 6.3% surge in March, marking its best performance in 15 months.

​The Bank Nifty index also showcased strength, with financial stocks leading the comeback in the month of March 2025.

“The rebound can be attributed to investors capitalizing on undervalued stocks, renewed foreign inflows, and improving economic indicators. Expected rate cuts by the Reserve Bank of India (RBI), improved credit growth and renewed Foreign Institutional Investors’ (FII) inflows positions the banking sector favorably for the upcoming fiscal year,” said Rahul Ghose, CEO of Hedged.in.

Analysts project a 12-13% credit growth for the banking sector in FY2026, driven by demand in services and retail segments. ​

Nifty 50 Outlook

Technically, Rahul Ghose believes it is prudent to remain cautious, noting that the Nifty 50 index closed the weekly chart with a classic Doji candle formation around the previous top of 23,800.

“This suggests that bulls are not able to hold on to the recent highs convincingly. The silver lining is, the Nifty, which was making lower tops and lower bottoms on weekly charts, has now negated that pattern with a high of 23,869 last week. This could mean that from a downtrend the markets could get into a sideways trading mode for sometime,” Ghose said.

Post the sideways movement, he believes the fundamental news flow, earnings season, Trump policies would largely determine whether Nifty 50 breaks down again or tries to breakout.

According to Rahul Ghose, in the short-term, resistance levels for Nifty 50 are observed around 24,000 - 24,500, with support between 23,400 - 23,000. For Bank Nifty, resistance is seen at 52,000 - 52,500, and support between 51,000 - 50,600.

Monitoring global cues and economic developments will be essential for navigating potential market volatility, he said.

Rahul Ghose has listed out 5 stocks to buy for long term, based on their strong fundamentals as well as technical charts. These five stock picks from Hedged.in are ITC, HDFC Bank, Tata Motors, Infosys and Siemens.

Stocks to buy for long term

ITC Ltd

ITC boasts a return on equity (ROE) of 28.33% and maintains a debt-to-equity ratio of 0.00%, indicating robust financial health. ITC share price volatility is relatively low at 19.87%, making it a stable choice for long-term investors seeking exposure to India’s growing consumer market. Ghose said.

Technically, ITC stock price has a strong support zone around ₹360 - 320 zone. This support zone is confluence with the 20 EMA (Exponential Moving Average) on the quarterly chart. On the weekly time frame too, ITC stock is showing cluster support around ₹320 - 360 zone, he added.

Ghose recommends traders can consider looking at ITC shares aggressively as the stock comes closer to this support zone for medium to long-term.

HDFC Bank

As one of India's leading private sector banks, HDFC Bank has demonstrated consistent growth and operational efficiency. HDFC Bank’s focus on digital initiatives and customer-centric products positions it well to capitalize on India’s expanding financial services sector, according to Ghose.

Technically, only two banking stocks have exhibited a strong uptrend and outperformance in the last couple of months - Kotak Mahindra Bank followed by HDFC Bank.

HDFC Bank has formed a strong morning star candlestick formation on a monthly time frame around the 20 EMA. With no strong overhead resistance, HDFC Bank share price is all set to break into new highs after almost 2 years of price consolidation. This breakout is further likely to give strong impetus for the HDFC Bank stock to move forward, he added.

Tata Motors

Tata Motors stock price is trading around the cluster of supports around ₹580 - 600 levels after a steep fall from the highs of ₹1,180. In the short-term, the uncertainty may persist due to Donald Trump’s decision on 25% tariffs on auto manufacturers.

However, the long-term outlook remains promising as Tata Motors remains a preferred choice among long-term investors, supported by growing earnings, debt reduction, and an expanding EV portfolio, he added.

Infosys

Infosys stock price is in a monthly sideways trend and approaching the support levels of ₹1,480 - 1,360. Infosys shares may consolidate for some time at this level, but considering the overall uptrend, the consolidation will result in an upward breakout.

Siemens

Siemens remains in a long-term uptrend as per the quarterly chart, supported by institutional buying. Siemens share price has corrected from the highs of ₹8,000 to approximately ₹5,200 levels. It has a strong support band sound ₹5,300 - 5,200 area which has confluence with the prior breakout area for the stock.

With its expanding order book, strong market positioning, and focus on high-margin businesses, Siemens is a solid long-term investment choice for investors looking at India’s industrial growth story, Ghose said.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.