As Indian equity markets began the new year 2026 on a mixed note, investors are looking for clear direction and specific opportunities. Market expert Raja Venkatraman, co-founder of NeoTrader, has identified three stocks that traders can consider for their portfolio on Thursday, 2 January 2026.
Market Recap: A Cautious Start to 2026
The first trading session of 2026 saw Indian benchmarks closing with divergent moves. While the Sensex slipped marginally by 32 points to settle at 85,188.60, the Nifty 50 managed a modest gain of 16.95 points, closing at 26,146.55. The broader market sentiment was mixed, with midcap stocks slightly outperforming.
The trading day was marked by stock-specific actions in the absence of major fresh triggers. ITC emerged as the biggest drag on the indices following news of a higher excise duty on tobacco. Heavyweights like ICICI Bank and Bajaj Finance also exerted pressure. On the positive side, support came from counters such as Larsen & Toubro, Infosys, and Mahindra & Mahindra.
Investors maintained a cautious stance ahead of the upcoming Q3 earnings season and developments in the India-US trade talks. The market's inability to decisively breach the 26,200 mark on the Nifty highlighted the ongoing consolidation at higher levels.
Raja Venkatraman's Top Stock Picks for 2 January
Against this backdrop, Raja Venkatraman has recommended three trading ideas—two for multiday holding and one for intraday. Here is a detailed look at his exclusive picks.
1. HEG Ltd (Hindustan Electro-Graphites)
Recommendation: Buy above ₹625 | Stop Loss: ₹600 | Target: ₹715 | Type: Multiday
HEG, India's leading manufacturer of graphite electrodes, is poised for an upward move according to the analysis. The stock, currently trading around ₹624.15, saw buoyancy at the end of 2025 driven by expectations related to Europe's carbon border rules and their impact on low-carbon steelmaking.
Venkatraman notes that after a prolonged period of consolidation, strong trended action is emerging. The stock is receiving robust support from technical indicators on intraday charts, fueling a potential rally. With bullish momentum building, this presents an opportune moment to take a long position.
Key Metrics: The stock has a P/E ratio of 50.33 and a 52-week high of ₹672. The technical analysis identifies strong support at ₹600 and resistance at ₹750.
2. Aditya Birla Capital Ltd (ABCAPITAL)
Recommendation: Buy above ₹363 | Stop Loss: ₹348 | Target: ₹395 | Type: Multiday
As the holding company for the Aditya Birla Group's financial services arm, Aditya Birla Capital is showing a promising rounding formation on the charts. With the stock price near ₹361.95, the analysis points to a steady buildup in momentum that could lead to a sustained upmove.
The recommendation is based on the stock holding firm within the NBFC space, with consistent demand observed at every decline. Traders are advised to go long to capitalize on the expected push towards higher levels.
Key Metrics: The stock trades at a P/E of 41.93, with its 52-week high standing at ₹368.95. Technical levels show support at ₹340 and resistance at ₹425.
3. UPL Ltd (United Phosphorus Ltd)
Recommendation: Buy above ₹807 | Stop Loss: ₹790 | Target: ₹830 | Type: Intraday
The global agriculture solutions provider, UPL, is recommended for an intraday trade. Currently priced around ₹805.35, the stock has been forming a constructive rounding pattern over the last two months.
The technical setup indicates that repeated tests of key bands have been followed by rises, highlighting the potential for further upward traction. Positive directional indicators on intraday charts are also inching higher, supporting the buy call for short-term gains.
Key Metrics: UPL has a P/E ratio of 22.62 and a 52-week high of ₹800.95. The stock finds support at ₹750, while resistance is placed at ₹850.
Market Outlook and Trading Strategy
Venkatraman's outlook suggests that while an upward bias remains in the market, clear directional momentum is lacking. The Nifty has struggled to move beyond the 26,200 resistance, indicating consolidation. The trading strategy, therefore, leans heavily on stock-specific actions rather than broader index movements.
Investors are advised to plan their trades carefully, book profits at regular intervals, and adhere strictly to the recommended stop-loss levels. The analyst emphasizes that all investments in securities are subject to market risks, and investors should consult certified experts before making any decisions.
Raja Venkatraman is the co-founder of NeoTrader (SEBI Research Analyst Registration No. INH000016223). The views and recommendations are those of the individual analyst and do not represent the views of Mint.
