Market expert and NeoTrader co-founder Raja Venkatraman has identified three stocks for investors to consider on Thursday, 26 December 2025. His recommendations come against a backdrop of cautious trading in the Indian equity markets, which saw a slight dip in the previous session.
Market Context: Indices Dip Amid FII Selling
On Wednesday, 24 December, the benchmark indices closed lower ahead of the Christmas holiday. The Sensex ended at 85,408.70, down 116.14 points (0.14%), while the Nifty settled at 26,142.10, losing 37.45 points (0.14%). The decline was primarily driven by profit-booking and sustained selling by Foreign Institutional Investors (FIIs), who offloaded equities worth nearly ₹1,795 crore.
Sectoral performance was mixed, with IT, pharma, and oil & gas stocks facing pressure. Concerns over changes to the US H-1B visa framework weighed on IT counters. However, small-cap stocks showed relative resilience, providing some support to overall market sentiment.
Raja Venkatraman's Top Stock Picks for 26 December
Despite the muted broader trend, Venkatraman highlights specific opportunities for traders and investors. Here are his three exclusive stock recommendations:
1. Gravita India Ltd
Recommendation: Buy above ₹1,870 | Stop Loss: ₹1,800 | Target: ₹2,030 (Multiday)
Venkatraman recommends Gravita India, a global leader in sustainable recycling of lead, aluminium, and plastic. The stock, after a period of consolidation and decline, has shown signs of revival with robust volume activity. Technical analysis indicates it has dipped into the lower end of the Ichimoku Kumo cloud, suggesting a potential recovery phase. Key metrics include a P/E ratio of 52.49 and a 52-week high of ₹2,337.25. Investors should be mindful of risks like macroeconomic cycles, commodity price volatility, and the company's debt burden.
2. Laurus Labs Ltd
Recommendation: Buy above ₹1,088 | Stop Loss: ₹1,072 | Target: ₹1,115 (Intraday)
Laurus Labs, a major manufacturer of Active Pharmaceutical Ingredients (APIs), is the intraday pick. Venkatraman notes that despite recent volatility, the stock has shown a tendency to bounce back from declines. An encouraging move towards the previous day's close, supported by a positive Relative Strength Index (RSI) signal, suggests potential for an upward move. The stock has a P/E of 85.77 and a 52-week high of ₹1,073.10. Risks include regulatory changes and intense competition in the pharma sector.
3. PNB Housing Finance Ltd
Recommendation: Buy above ₹970 | Stop Loss: ₹950 | Target: ₹1,030 (Intraday)
The third recommendation is PNB Housing Finance, a leading housing finance company promoted by Punjab National Bank. The analyst points to the formation of a strong bullish candle on Wednesday after a phase of consolidation within the Ichimoku cloud. With the RSI moving above the 60 level, the technical setup indicates room for further upside in the coming sessions. The stock trades at a P/E of 11.48, with its 52-week high at ₹1,141.85. Key risks involve asset quality fluctuations and sensitivity to broader economic factors.
Market Outlook and Trading Strategy
Venkatraman observes that the market trends indicate a lack of broad participation, leading to uncertainty. While a bullish bias persists, the path forward is not expected to be easy, with indices facing challenges at higher levels. The weekly options expiry remained muted, and global cues are currently dictating the direction.
The overall strategy, according to the expert, should be to "buy on dips." Any intraday declines could be viewed as buying opportunities, as the underlying bias still favours an upward trajectory over the coming weeks. However, traders are advised to remain cautious and focus on stock-specific actions, especially with the monthly derivatives expiry approaching.
Disclaimer: Investments in securities are subject to market risks. The views and recommendations are those of individual analyst Raja Venkatraman (SEBI Reg No. INH000016223). Readers are advised to consult certified experts before making any investment decisions.
