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As Diwali approaches, bringing the lights of prosperity and happiness, investors have a unique opportunity to utilize this auspicious occasion for a fresh financial start.
As Diwali approaches, bringing the lights of prosperity and happiness, investors have a unique opportunity to utilize this auspicious occasion for a fresh financial start. The Diwali Muhurat trading session symbolizes much more than tradition; This serves as a meaningful gateway into Samvat 2081, a promising year in which strategic investments can lay the foundation for stable growth. This year, the equity market has already rewarded investors with impressive returns. For example, the Nifty index hit a peak of 26,277 last month before entering a corrective phase, largely due to foreign institutional investors (FIIs) pulling out more than Rs 90,000 crore in October alone.
This recent correction was expected, as Nifty's peak was aligned with key retracement resistance levels and momentum indicators on both weekly and monthly charts had reached overbought conditions. While this pullback represents a price-wise correction, analysts say it is part of a healthy, ongoing uptrend that could also see a time-wise correction in the near term.
With the beginning of the new Samvat year with Diwali Muhurat Trading, investors are encouraged to make selective, strategic investments. Based on expert insights, 5paisa highlights five technically strong stocks to consider during this auspicious session: Reliance Industries, SBI, Bharat Dynamics Limited (BDL), Olectra Greentech and Mphasis. Let's take a closer look at these recommendations, each of which is supported by good technical analysis and is poised to deliver potentially favorable returns.
Stock selection for Muhurta trading up to 5paisa in Samvat 2081
Reliance Industries • Buy Range: Rs. 2710-Rs. 2740 • Support Level: Rs. 2530/Rs. 2450 • Potential target: Rs. 3030/Rs. 3250 Reliance Industries, which is a leader in several sectors, is currently trading near its weekly 89-EMA support level. The stock has retraced 50% from its previous uptrend, with the daily Relative Strength Index (RSI) indicating oversold conditions, indicating a potential rebound in the near term. However, it is important to note that Reliance Industries will undergo a corporate action with a 1:1 bonus issue on October 28, 2024; Thus, price levels will adjust accordingly. This stock remains a strong candidate for accumulation on dips, and technical indicators suggest the potential for further upside.
State Bank of India (SBI) • Buy Range: Rs 800-Rs 820 • Support Level: Rs 765/Rs 730 • Potential Targets: Rs 915/Rs 970 India's largest public sector bank SBI recently took a strong support base at its 200-day EMA. has made. Furthermore, the stock has broken the trendline resistance level, indicating fresh momentum in its price movement. The RSI oscillator on SBI points towards an upward trend, making this stock a favorable choice for Diwali muhurat trading. SBI's technical setup supports a buy-on-dip strategy, and its fundamentals strengthen its position as a valuable stock for both long-term and short-term investors.
Bharat Dynamics Limited (BDL) • Buy Range: Rs 1000-Rs 1030 • Support Level: Rs 950/Rs 870 • Potential Targets: Rs 1190/Rs 1300 Bharat Dynamics Limited, a major player in India's defense sector, stands out with its solid technical structure. Previous breakout levels have turned into strong support zones, and the stock is currently trading around the weekly 50 EMA. A notable factor here is the low trading volume during recent corrections, indicating limited selling pressure and a stable price base. This setup suggests that BDL may be well positioned for an upward move, making it an attractive option for investors looking for strategic accumulation during the bullish trading session.
Olectra Greentech Limited • Buy Range: Rs. 1600-Rs. 1620 • Support Level: Rs. 1500/Rs. 1380 • Potential target: Rs. 1860/Rs. 2040 Olectra Greentech, known for its innovations in the electric vehicle and green technology sector, has experienced a marginal improvement. Minimum trading volume indicates low selling pressure. Currently trading around its weekly 50 EMA support level, Olectra Greentech's RSI on the weekly chart has shown a positive crossover, pointing towards favorable momentum ahead. As an environmentally focused company, Olectra Greentech is aligned with long-term sustainability trends, and its technical indicators support potential growth, making it a promising option this festive season.
emphasis • Buy Range: Rs. 3080-Rs. 3100 • Support Level: Rs. 2840/Rs. 2648 • Potential target: Rs. 3560/Rs. 3880 Mphasis, a major player in the IT services sector, is forming a “Higher Top Higher Bottom” pattern, which is considered a strong bullish indicator. The 20 EMA on its weekly chart acts as a support level, while the RSI oscillator points towards positive momentum. This technical strength positions Mphasis as an ideal candidate for Diwali muhurat trading, especially as the IT sector is benefiting from global digital transformation trends. With stable technical indicators and positive momentum, Mphasis presents an attractive entry point for investors seeking long-term gains.
Strategic Tips for Muhurat Trading
• Accumulate on declines: For each of these selected stocks, adding declines toward the Support 1 level can help investors consolidate their positions when markets stabilize, leading to more significant profits as prices bounce back. Could.
• Set Stop Loss: To minimize risks, it is advisable to place stop-loss orders just below the Support 2 levels, especially during volatile sessions. This ensures that unexpected downturns do not affect the overall portfolio health.
• Moderate expectations: Given the anticipated consolidation phase in the market, traders and investors should set realistic expectations for moderate gains in the coming year. High-quality stocks that align with the market's long-term growth trend are ideal for portfolio flexibility.
Diwali Muhurat trading session in Samvat 2081 is more than a symbolic tradition; This represents a valuable opportunity for investors to set a path for a financially successful year. Investors can build a balanced and growth-oriented portfolio in technically resilient stocks like Reliance Industries, SBI, Bharat Dynamics Limited, Olectra Greentech and Mphasis. Each of these stocks is supported by strong technical indicators that provide a stable foundation for those seeking both short-term profits and long-term growth.
As Samvat 2081 unfolds, the equity market is expected to undergo a phase of consolidation, requiring investors to be patient and choose investment options wisely. This Muhurat trading session is the right time to embrace strategic accumulation opportunities, allowing portfolio expansion and stability in the event of a market downturn.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)