November 1, 2024 | Indian Stock Exchanges Embrace Diwali Celebrations with a Unique Muhurat Trading Session
On November 1, 2024, Indian stock exchanges remain closed in observance of Diwali, the festival of lights, a time for celebrating prosperity, new beginnings, and renewal. However, as has become tradition, Indian markets will open for a brief one-hour Muhurat Trading session later today, running from 6:00 p.m. to 7:00 p.m. IST. This event not only marks the beginning of the new Hindu calendar year, Samvat 2081, but also holds cultural significance as a time when trades made are believed to be especially auspicious, symbolizing wealth and success for the coming year.
What Makes Muhurat Trading Special?
The Muhurat Trading session is a long-standing Indian tradition where investors, traders, and institutions engage in symbolic trades that are meant to bring prosperity. Since its inception, Muhurat Trading has seen widespread participation across retail investors, institutions, and seasoned traders. While trading volumes in this hour tend to be lighter, the sentiment behind it is powerful, with investors embracing the opportunity for ceremonial investments in both blue-chip and promising stocks.
Interestingly, the BSE Sensex has closed in the green in 13 of the last 17 Muhurat Trading sessions, reinforcing the positive energy associated with this time-honored event. In 2023, for example, Diwali took place on November 12, and indices rose by over 0.5%, making it one of the best-performing sessions in the last five years, according to historical market data.
Key Muhurat Trading 2024 Stock Picks
Several brokerages have recommended specific stocks for this year’s Muhurat Trading session, with a focus on those offering strong fundamentals and significant upside potential. Here are some highlighted recommendations from Religare Broking:
- Bharat Electronics Limited (BEL)
Accumulation Zone: ₹282-₹286
Target Price: ₹308-₹330
Stop Loss: ₹268
Expected Return: ~15%
Bharat Electronics is a popular pick due to its stability and growth potential. With a target range up to ₹330, the stock offers an estimated 15% return, as per Religare Broking’s technical analysis. - City Union Bank
Accumulation Zone: ₹173-₹176
Target Price: ₹192-₹204
Stop Loss: ₹164
Expected Return: ~16%
City Union Bank appeals to those seeking stability in the financial sector, with a potential return of around 16%. This stock aligns well with a conservative approach toward banking investments. - Federal Bank
Accumulation Zone: ₹202-₹205
Target Price: ₹218-₹226
Stop Loss: ₹194
Expected Return: ~10%
Federal Bank remains an attractive pick with a 10% potential return, emphasizing a safe investment amid current market conditions. - Fortis Healthcare
Accumulation Zone: ₹623-₹628
Target Price: ₹665-₹680
Stop Loss: ₹602
Expected Return: ~8%
Healthcare stocks like Fortis provide defensive investments, with an expected return of around 8%, reflecting the sector’s robust outlook. - Gujarat Mineral Development Corporation (GMDC)
Accumulation Zone: ₹368-₹372
Target Price: ₹420-₹440
Stop Loss: ₹337
Expected Return: ~18%
GMDC, highlighted as a strong investment, promises an estimated 18% return if the target price range of ₹420-₹440 is reached.
Broader Market Outlook for Samvat 2081
The backdrop for Samvat 2081 has been mixed, with the Nifty index dropping by 5.7% in October due to weaker-than-expected Q2 earnings and valuation concerns. This trend underlines the importance of caution as investors consider opportunities and risks. According to SBI Securities, “Samvat 2081 will be a bottoms-up stock pickers’ market,” encouraging a selective approach to preserve the wealth created post-COVID while moderating return expectations for the next 6-12 months. SBI analysts advise a gradual approach to capital deployment, with an eye on potential gains later in the year.
Nilesh Jain, AVP at Centrum Broking, advises long-term investors to focus on quality stocks following recent market corrections. While noting some short-term weaknesses, Jain points to a critical support level at the 200-day EMA (23,500), suggesting that Nifty could rally toward 25,100 if this support holds. This guidance is particularly valuable for those looking to take advantage of the market’s inherent cycles.
Similarly, Hrishikesh Yedve, AVP at Asit C. Mehta Investment Intermediates, emphasizes watching the Nifty’s trading range of 24,000-24,500 to help set the tone for upcoming trends. For Bank Nifty, Yedve identifies support at 51,000-51,150 and resistance at 52,580, framing these levels as key for short-term movement.
Hot Stocks to Watch for Muhurat Trading 2024
Beyond Religare’s picks, other analysts have recommended stocks to consider during Muhurat Trading 2024:
- Macrotech Developers:
Entry Price: ₹1,082
Target: ₹1,368
Upside Potential: ~26%
Recommended by Centrum Broking - TCS:
Entry Price Range: ₹4,085-3,900
Target: ₹4,650
Stop Loss: ₹3,700
TCS offers a strong position in IT, noted for its resilient market position. - Trent:
Entry Price Range: ₹7,150-6,950
Target: ₹8,900
Stop Loss: ₹6,300
Trent, a notable pick in the consumer sector, aligns well with consumer spending trends. - Jyoti Resins and Adhesive:
Entry Price: ₹1,457
Target: ₹1,930
Upside Potential: ~32%
Analysts suggest this stock for those interested in niche sectors, with Jyoti Resins positioned well for growth.
Final Thoughts
Muhurat Trading serves as a unique opportunity not only for traditional investments but also for strategically timed portfolio additions. The ritual of beginning Samvat 2081 with a ceremonial trade is deeply embedded in Indian market culture, reflecting optimism and forward-looking strategies.
With insights from seasoned analysts and a focus on quality stocks with solid fundamentals, Muhurat Trading 2024 offers a chance for investors to capitalize on market trends in an auspicious setting. Whether investing in blue-chip stocks or emerging players, this special session encapsulates the hope, optimism, and promise of prosperity for the new year.
