Indian equity markets kicked off the new week on a robust note, setting a positive stage for investors. Against this backdrop, market expert Raja Venkatraman, co-founder of NeoTrader, has identified three specific stocks for trading consideration on Monday, 5 January 2026.
Market Sets Strong Foundation
On Monday, Indian benchmarks closed with significant gains, driven by firm global cues and aggressive buying in key sectors like banking and metals. The S&P BSE Sensex surged 573.41 points, or 0.67%, to finish at 85,762.01. Similarly, the Nifty50 jumped 182 points, or 0.7%, to settle at 26,328.55, after briefly touching a fresh record high of 26,340.10 during the session. This bullish sentiment was mirrored in Asian markets and positive US futures, providing a conducive environment for stock-specific actions.
Raja Venkatraman's Top Stock Picks for 5 January
With indices showing resilience but also signs of fatigue, stock selection becomes crucial. Here are the three stocks recommended by Raja Venkatraman for trading on 5 January.
1. Dabur India Ltd (CMP: ₹522.60)
The analyst recommends a buy on this leading FMCG and Ayurvedic products company if the stock moves above ₹525. The suggested stop loss is ₹507, with a multiday target price of ₹580.
Rationale: Venkatraman points to a technical formation that suggests a potential upward move. A double bottom pattern observed over recent weeks appears to be resolving, with strong trending action emerging on Friday's session. A breakout beyond key technical levels on intraday charts is seen as fueling a new leg of the rally.
Key Details: The stock has a P/E ratio of 65.02 and its 52-week high stands at ₹576.80. Technically, it finds support around ₹500 and faces resistance near ₹650. Investors should note risks including the company's exposure to cyclical segments and product concentration.
2. RR Kabel Ltd (CMP: ₹1,510.50)
For this prominent wires and cables manufacturer, the recommendation is to buy above ₹1,515. The advised stop loss is ₹1,470, with a multiday target of ₹1,615.
Rationale: The cable sector is holding firm, and RR Kabel is showing a promising technical pattern. A recent rounding formation is expected to extend in the coming days. The analysis indicates strong support at key bands, with every reaction being met with a positive push, suggesting a move to higher levels.
Key Details: The stock trades at a P/E of 42.68, with a 52-week high of ₹1,563.10. Support is placed at ₹1,450, while resistance is seen at ₹1,650. Volatility in raw material prices and economic cycles are key risk factors.
3. Paytm (One97 Communications) (CMP: ₹1,340.60)
For the fintech major, this is an intraday recommendation. The call is to buy above ₹1,340, with a tight stop loss at ₹1,315 and a target of ₹1,385.
Rationale: After a prolonged period of consolidation within a specific technical cloud region, Paytm witnessed a sharp rise on Friday. This breakout hints at further upward potential. Intraday charts are showing positive directional indicators, suggesting the possibility of more upward traction in the short term.
Key Details: The stock's 52-week high is ₹1,381.75. It has technical support at ₹1,250 and resistance at ₹1,450. The investment thesis carries risks related to regulatory compliance, fierce market competition, and the path to sustained profitability.
Market Outlook and Trader Guidance
While the overall market momentum is buoyant, Venkatraman notes that the relentless upward move is beginning to show signs of tiredness. Unexpected intraday dips are introducing a note of bearish caution. The action has shifted to being stock-specific in the absence of broad market triggers.
Mid-cap and small-cap segments are expected to remain active, buoyed by strong retail participation across sectors. However, the trends are described as brittle, necessitating a watchful approach. The analyst observes that new buying in recent days is causing leveraged weak hands to exit quickly during sell-offs, which limits prolonged downside reactions.
Globally, recovering markets support a mildly bullish local stance. Technical indicators like the Relative Strength Index (RSI) show no divergences, suggesting pullbacks should be used as buying opportunities. Option chain data, however, indicates confusion, with a high probability of support levels being tested. The Nifty is anticipated to oscillate in a wider range between 26,000 and 26,600 for the current series.
Disclaimer: Raja Venkatraman is the co-founder of NeoTrader (SEBI Research Analyst Registration No. INH000016223). Investments in securities markets are subject to market risks. Read all related documents carefully before investing. The views and recommendations are those of the individual analyst and do not represent the views of the publisher. Investors are advised to consult certified experts before making any investment decisions.
