As Diwali Muhurat Trading signals the onset of a new Samvat year, investors are encouraged to seize this auspicious occasion for selective and strategic investments. This period not only embodies tradition but also acts as a meaningful gateway into Samvat 2081—a year that holds promise for strategic investments that could foster steady growth. The equity market has already shown its potential, with the Nifty index reaching a high of 26,277 before experiencing a corrective phase in the past month, primarily due to Foreign Institutional Investor (FII) outflows exceeding Rs 90,000 crores in October.
This recent correction was anticipated, coinciding with key retracement resistance levels and overbought conditions indicated by momentum indicators on both weekly and monthly charts. While this pullback signifies a price-wise correction, analysts consider it part of a healthy, ongoing uptrend, with a potential time-wise correction also on the horizon.
In light of Diwali Muhurat Trading, investors are encouraged to make selective, strategic investments. Drawing from expert insights, we have identified five technically sound stocks to consider during this auspicious trading session: Reliance Industries, SBI, Bharat Dynamics Limited (BDL), Olectra Greentech, and Mphasis. Let’s delve into these recommendations, each supported by solid technical analysis and positioned for potentially favorable returns.
Stock Recommendations for Samvat 2081 Muhurat Trading
- Reliance Industries
- Buy Range: Rs 2710-Rs 2740
- Support Levels: Rs 2530/Rs 2450
- Potential Targets: Rs 3030/Rs 3250
Reliance Industries, a major player across various sectors, is currently trading near its weekly 89-EMA support level. Having retraced 50% from its previous uptrend, the daily Relative Strength Index (RSI) indicates oversold conditions, hinting at a possible rebound. Notably, a corporate action is scheduled for October 28, 2024, involving a 1:1 bonus issue, which will adjust price levels. This stock remains a solid option for accumulation on dips, with technical indicators suggesting further upside potential.
- State Bank of India (SBI)
- Buy Range: Rs 800-Rs 820
- Support Levels: Rs 765/Rs 730
- Potential Targets: Rs 915/Rs 970
As India’s largest public sector bank, SBI has recently established a strong support base at its 200-day EMA. The stock has successfully broken through a trendline resistance level, indicating renewed momentum. The RSI oscillator shows an upward trend, making SBI an attractive choice for Diwali Muhurat Trading. Its technical setup supports a buy-on-dip strategy, and its fundamentals enhance its appeal for both long-term and short-term investors.
- Bharat Dynamics Limited (BDL)
- Buy Range: Rs 1000-Rs 1030
- Support Levels: Rs 950/Rs 870
- Potential Targets: Rs 1190/Rs 1300
BDL, a key player in India’s defense sector, boasts a solid technical structure. Previous breakout levels have evolved into strong support zones, and the stock is currently near the weekly 50 EMA. The low trading volume during recent corrections suggests limited selling pressure, creating a stable price base. This scenario positions BDL well for potential upward movement, making it a compelling option for investors looking to strategically accumulate during the Muhurat Trading session.
- Olectra Greentech Ltd
- Buy Range: Rs 1600-Rs 1620
- Support Levels: Rs 1500/Rs 1380
- Potential Targets: Rs 1860/Rs 2040
Known for its innovations in electric vehicles and green technology, Olectra Greentech has seen a slight correction with minimal trading volume, indicating reduced selling pressure. Currently trading around its weekly 50 EMA support level, the RSI on weekly charts shows a positive crossover, signaling favorable momentum ahead. As an environmentally focused firm, Olectra aligns with long-term sustainability trends, supported by technical indicators that suggest growth potential.
- Mphasis
- Buy Range: Rs 3080-Rs 3100
- Support Levels: Rs 2840/Rs 2648
- Potential Targets: Rs 3560/Rs 3880
Mphasis, a prominent player in the IT services sector, is forming a “Higher Top Higher Bottom” pattern, a strong bullish signal. The 20 EMA on its weekly chart serves as a support level, with the RSI indicating positive momentum. This technical strength makes Mphasis an ideal candidate for Diwali Muhurat Trading, particularly as the IT sector continues to benefit from global digital transformation trends. With stable indicators and positive momentum, Mphasis presents an appealing entry point for investors seeking long-term gains.
Strategic Tips for Muhurat Trading
- Accumulate on Dips: For each selected stock, consider adding positions on dips toward Support 1 levels to strengthen holdings as the market stabilizes, maximizing potential gains during price rebounds.
- Set Stop Losses: To manage risks, it’s advisable to place stop-loss orders just below Support 2 levels, especially in volatile trading sessions, ensuring that unexpected downturns don’t adversely affect portfolio health.
- Moderate Expectations: Given the anticipated consolidation phase in the market, investors should set realistic expectations for moderate gains in the coming year. High-quality stocks aligned with the market’s long-term upward trend are ideal for maintaining portfolio resilience.
Conclusion
The Diwali Muhurat Trading session for Samvat 2081 transcends mere tradition; it offers a valuable opportunity for investors to establish a foundation for a financially prosperous year. By focusing on technically resilient stocks like Reliance Industries, SBI, Bharat Dynamics Limited, Olectra Greentech, and Mphasis, investors can create a balanced, growth-oriented portfolio. Each stock is backed by strong technical indicators, providing a solid basis for both short-term gains and long-term growth.
As Samvat 2081 unfolds, the equity market is expected to enter a consolidation phase, necessitating patience and calculated investment choices from investors. This Muhurat Trading session is an opportune moment to embrace strategic accumulation, facilitating portfolio expansion and stability amidst market corrections. Diwali, the festival of lights, symbolizes new beginnings, and with expert recommendations, you can illuminate your financial future with prosperity and growth.
(With inputs from agency)