Market Expert Raja Venkatraman Recommends Three Stocks to Buy on 5 February
Renowned market analyst and NeoTrader co-founder Raja Venkatraman has unveiled his exclusive stock recommendations for trading on Wednesday, 5 February 2026. In a detailed analysis, he identifies three specific equities that present potential buying opportunities for investors seeking to capitalize on current market movements.
Market Context: Modest Gains Amid Mixed Signals
The Indian equity markets concluded the previous trading session on 4 February with marginal advances, reflecting cautious optimism amidst global uncertainties. The benchmark Sensex edged higher by 79 points to close at 83,817.69, while the Nifty 50 gained 48 points to settle at 25,776. Notably, mid-cap and small-cap segments demonstrated stronger performance, with the BSE 150 MidCap Index rising 0.61% and the BSE 250 SmallCap Index climbing 0.54%.
The overall market capitalization of BSE-listed companies expanded significantly, increasing by approximately ₹2 trillion to reach nearly ₹469 trillion. This surge enriched investors substantially in a single trading session, highlighting the underlying strength in broader market participation.
Sectoral performance exhibited considerable divergence. While information technology stocks faced substantial pressure, declining around 6% due to concerns about artificial intelligence disruptions, several traditional sectors including automobiles, energy, consumer durables, public sector undertakings, realty, metals, oil & gas, and power recorded healthy gains ranging between 1-2%.
Technical Outlook and Market Dynamics
Current market conditions present a complex picture characterized by limited directional trends and persistent resistance levels. Despite occasional revival attempts, upward momentum remains constrained by technical barriers and investor caution.
Foreign portfolio investors, who maintained bearish positions on Indian markets since October 2024, executed significant short covering on Tuesday following the announcement of an India-United States trade agreement. This development forced FPIs to unwind nearly two-fifths of their derivative positions, injecting temporary volatility into the market structure.
Technical analysis indicates that resistance and support zones for February have been clearly defined, with the Nifty facing pressure at higher levels. The option data reveals a maximum pain point at 25,750, suggesting the market is consolidating ahead of upcoming events including the Reserve Bank of India's policy announcement. The put-call ratio stands at 0.96, reflecting ongoing uncertainty about near-term direction.
While the broader indices exhibit hesitation, the Bank Nifty demonstrates relatively stronger trend characteristics, making it a preferred index for many market participants. Amid this backdrop of index-level consolidation, stock-specific opportunities continue to emerge for discerning investors.
Raja Venkatraman's Three Stock Recommendations
1. Steel Authority of India Limited (SAIL)
Current Market Price: ₹266.95
Recommendation: Buy above ₹158
Stop Loss: ₹153
Target Price: ₹171 (Multiday trade)
Why it's recommended: Steel Authority of India Limited represents India's largest government-owned steel manufacturing enterprise, operating an extensive network of production facilities across the country. Technical analysis indicates the stock has demonstrated a strong thrust above critical cloud regions, suggesting the potential development of bullish momentum that could propel prices higher in the coming weeks.
Fresh buying interest appears to be emerging as momentum accelerates, creating favorable conditions for establishing long positions. Key technical levels include support at ₹725 and resistance at ₹1,100, while the stock currently trades at a price-to-earnings ratio of 23.77.
Risk factors to consider: Investors should remain mindful of volatility in global steel prices and raw material costs, increasing debt levels due to substantial capital expenditure requirements, and potential margin pressures in the cyclical steel industry.
2. Bank of India
Current Market Price: ₹160.93
Recommendation: Buy above ₹161
Stop Loss: ₹155
Target Price: ₹172 (Multiday trade)
Why it's recommended: Bank of India stands as a major public sector banking institution with a legacy dating back to 1906, offering comprehensive retail, wholesale, and treasury banking services nationwide. The stock has demonstrated resilience following the Union Budget announcements and strong third-quarter earnings, successfully absorbing profit-booking pressure while maintaining recent highs.
The formation of a long-body candle during Wednesday's trading session, despite considerable market volatility, signals potential for upward movement toward higher price levels. Technical parameters indicate support at ₹153 and resistance at ₹178, with the stock trading at an attractive price-to-earnings multiple of 7.23.
Risk factors to consider: Key challenges include credit risk associated with non-performing assets, evolving regulatory requirements, cybersecurity vulnerabilities, intensifying competition in the banking sector, and broader economic volatility. Recent analysis continues to highlight ongoing concerns regarding asset quality within the public banking space.
3. Oil and Natural Gas Corporation (ONGC)
Current Market Price: ₹266.95
Recommendation: Buy above ₹267
Stop Loss: ₹257
Target Price: ₹281 (Multiday trade)
Why it's recommended: Oil and Natural Gas Corporation Limited serves as India's premier national oil company, accounting for over 70% of domestic hydrocarbon production. Technical charts reveal the development of a rounding bottom pattern on daily timeframes, fueling a recovery trajectory over recent months.
The strong upward momentum observed in recent trading sessions indicates volume-led traction that could support further price appreciation. With technical indicators providing supportive signals, conditions appear favorable for establishing long positions in this energy sector heavyweight.
Risk factors to consider: Potential headwinds include regulatory changes in the energy sector, substantial capital expenditure requirements for exploration and production activities, geological uncertainties inherent in hydrocarbon exploration, and volatility in global crude oil prices.
Important Disclaimers and Regulatory Information
Raja Venkatraman serves as co-founder of NeoTrader and holds SEBI registration as a research analyst (registration number INH000016223). All investment decisions in securities markets carry inherent risks, and investors should thoroughly review all related documentation before committing capital.
Registration granted by SEBI and certification from NISM do not guarantee intermediary performance or assure returns to investors. The views and recommendations presented in this analysis represent individual analyst perspectives and do not reflect institutional opinions. Investors are strongly advised to consult certified financial experts before making any investment decisions.
