Stocks to buy: Raja Venkatraman recommends three stocks for today—1 January

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Subscribe to enjoy similar stories. Wishing all our readers a very Happy New Year! As 2024 drew to a close, markets grappled with significant challenges: geopolitical instability, underwhelming Q2 earnings, foreign institutional investor (FII) outflows, volatility from central bank rate cuts, and tariff concerns over Donald Trump's policies.

Read this | Stock market today: Nifty 50, Sensex close flat, wrap 2024 with modest gains; mid, small-caps outperform Indian markets started the final trading day of the year on a grim note, with a sharp drop below Monday's lows dealing a blow to bullish sentiment early on. However, a spirited recovery by the close rekindled hope for the bulls, offering a glimmer of optimism as the year ended.

As highlighted in the previous report, market uncertainty at the open pushed indices lower. "…Put Call Ratio (PCR) is moving above 1 indicating that there is some Put writing at important supports around 23,500 hinting at a possibility of some upside that can emerge from lower levels." Read this | Top sectors to pick and avoid in 2025 Tuesday's test of these levels has prompted a reassessment of strategies, with trends continuing to signal room for further decline.

That said, robust put writing on Tuesday has created a support floor, limiting the downside. With the Nifty spot still trading below the critical 200-DMA zone at 23,900, any signs of bullishness must be approached with caution and a limited objective.

It’s advisable to remain vigilant with long positions, as the markets are not yet out of the woods. • Jio Financial Services Ltd (JIOFIN): Sell below ₹297, stop ₹303, target ₹287 Shares of non-banking financial companies (NBFCs) have come under significant pressure, with trends showing a