The pair, on-loan from Fulham and West Brom respectively, will join the Cobblers for the remainder of the term.
Cobblers boss Stuart Grayson made the double swoop ahead of the transfer deadline, fending off interest from a number of clubs.
Admitting his delight in bolstering his current rearguard, Grayson revealed he had been targeting both players for some time.
Delighted"We are really pleased to have signed Adam, who is very highly rated by his club." Gray told the club's official website.
"He was sought after by a number of clubs who were all keen to take him on loan, so we are happy to have won that race."
"Jared is a player that has caught my eye in the past," he added.
"We played West Brom in a pre-season friendly here at Sixfields and I was impressed with his performance in that game and I've also seen him play for their reserves.
"He can play at either right or left-back and I'm sure he will be another good asset to our squad."
ImpactHodgkiss looks set to line up for the Cobblers' upcoming trip to fellow strugglers Carlisle.
Watts, however, could miss out after picking up a knock to the head in a previous game.
"Adam suffered concussion in a recent game and on medical advice he may have to sit out of the weekend game, but we are sure enough of his ability to bring him in as I am confident he will be a big asset to us in the remaining matches."