Why bother? Big hammer and a masonry nail should achieve pretty much the same result, hell forget about the nail and just use the hammer.
I was going to suggest that when I read all your fancy talk about masonry nails. Not everyone is a professional, you know. If you make the hole big enough, you don’t even need a towel rack – just wedge the towel right in the hole and job done. Simple and elegant. There’s a tutorial video here.
Why not just buy a freestanding towel rack?
Due to space constraints, freestanding towel rack wont work.
That sucks, cause large bath towel is what I am planning on hanging.
Hanging a large towel on a hook doesn’t always allow for the towel to dry properly.
Hire someone who already has the right tool and the experience to do it.
The whole idea of a hole seems quite bourgeois, why bother?! Just let it lie where it falls.

We hung up several towel racks using glue directly applied to the back and then stuck to the wall. We ordered the racks from Shopee and they came with the required glue. None have fallen down so far and they seem very sturdy. Of course, they probably would not hold body weight, but a couple of towels are fine.
We live in a rental and I did not want to drill into tiles.
