The current market reminds me of the Boston Marathon, when a runner was struggling to continue his race at 26.20 km and another runner helped him to continue his race. But the bulls were helpless when the Nifty50 was barely 30 points shy of a fresh all-time high last week; global jitters barged in like an uninvited guest crashing a perfectly planned weekend. The spoiler-in-chief? The sudden nervousness around global market sentiment, led by cues from tech heavyweight Nvidia.
Warning: What the bulls are missing
The Nifty50 posted a new 52-week high at 26,246 and, in true bull-market style, ended the last week well above 26,000. On the surface, everything looked picture-perfect with another strong week, another sign of India’s market maturity.
But beneath this shiny surface, the market breadth is sending an alarming signal for the bulls.
The NSE All Sector Breadth, which essentially reflects the cumulative health of sectoral indices and the Nifty50, is forming lower highs.
Falling breadth usually indicates that the rally is not broad-based; fewer stocks are contributing to the upward push while many are slowing down or losing momentum.
However, this does not mean the trend has turned bearish. A falling breadth within a rising market can also be a sign of a short-term retracement; a pause, not a reversal. In strong bull phases, markets often breathe before resuming their upward journey.
For investors, this phase is not about panic; it is about preparation. Retracements often create opportunities to identify future winners and stocks that can lead the next leg of the rally.
With that in mind, here are three stocks that hold multi-bagger potential for 2026 and deserve a place on every investor’s watchlist.
1. M&M Financial: The sleeping giant wakes up
A silent performer in the NBFC segment, M&M Financial has been quietly breaking out.
On the weekly chart, the stock formed a large rectangle pattern, consolidating between Rs.230 and Rs.320 for a prolonged period.
Such long consolidations often indicate accumulation, where smart money builds positions calmly, away from the noise.
Recently, the stock broke out of this channel, signalling trend resumption after a significant pause.
The consolidation range itself was approximately 30%, and adding this to the breakout area gives a possible target close to Rs.435.
Historically, stocks breaking out from long consolidations often surpass their pattern targets, especially in bullish market environments. With improving rural credit sentiment and strong parentage, M&M Financial stands tall as a potential multi-bagger candidate.
2. Nykaa: The turnaround story smart money is watching
Nykaa’s stock price journey post-listing has been nothing short of dramatic. After hitting a high of Rs. 428 in 2021, the stock spiralled down to Rs. 114, disappointing early investors while giving patient ones a second chance.
But the chart since 2023 tells a different story altogether. The stock has quietly built a higher high – higher low structure, signalling that smart investors have slowly re-entered.
A recent breakout above the 2024 high indicates the possibility of a fresh trend. Yes, a retracement can occur if the market cools, but such a pullback may only act as a potential accumulation opportunity.
Can Nykaa regain its listing high? The structure suggests that the worst may be over, and if the broader market supports, crossing its previous highs may not be a distant dream.
3. Carysil limited: Premium growth at a discount
Before diving into charts, Carysil deserves a quick introduction. Known for its premium kitchen solutions like sinks, faucets, and quartz products, the company has built a strong global footprint.
With a market cap of around Rs. 2,700 crore, Carysil has evolved from a niche manufacturer into a recognised lifestyle and home-improvement brand.
Since its 2021 listing, the stock has been in a long-term uptrend. Over the past year, while the market consolidated, Carysil too traded within a broader range, another sign of steady accumulation.
In November, the stock posted its highest weekly closing at Rs.1,036, suggesting confident buying by institutional players. If the stock or the broader market retraces, levels around Rs.850 may act as a strong accumulation zone. From there, a potential medium-term target of Rs.1,500 can be on the cards.
With rising spending on premium home interiors in India and strong export demand, Carysil stands out as a structural growth story.
Are bulls warming up for 2026?
The market may have paused just before a record high, but pauses are not failures; they are setups. The falling breadth hints at a short breather, not a breakdown. For investors, this is the phase where future multi-baggers quietly prepare their base.
As 2026 approaches, the next set of market leaders may already be forming. M&M Financial, Nykaa, and Carysil are three such names worth tracking closely.
Because in bull markets, it’s never about who reaches the high first; it’s about who sustains it the longest.
Note: The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Brijesh Bhatia is an Independent Research Analyst and is engaged in offering research and recommendation services with SEBI RA Number – INH000022075. He has two decades of experience in India’s financial markets as a trader and technical analyst.
Disclosure: The writer and his dependents do not hold the stocks discussed here. The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives and resources, and only after consulting such independent advisors if necessary.
