Diwali Stock Picks 2024: Top Stocks to Buy on Muhurat Trading for Samvat 2081 – News18

Last update:October 29, 2024, 2:15 p.m. IST

As Diwali arrives, bringing with it the light of prosperity and joy, investors have a unique opportunity to take advantage of this auspicious occasion for a financial fresh start.

As Diwali arrives, bringing with it the light of prosperity and joy, investors have a unique opportunity to take advantage of this auspicious occasion for a financial fresh start. The Diwali Muhurat trading session symbolizes more than tradition; it provides a significant gateway to Samvat 2081, a promising year in which strategic investments can lay the foundation for steady growth. This year, the stock market has already rewarded investors with impressive returns. The Nifty index, for example, surged to a high of 26,277 before entering a corrective phase over the past month, largely driven by outflows by foreign institutional investors (FIIs) amounting to over Rs 90,000 crore in October alone.

This recent correction was expected as the Nifty spike aligned with key retracement resistance levels and momentum indicators on the weekly and monthly charts reached overbought conditions. While this pullback represents a correction from a price perspective, analysts note that it is part of a healthy, ongoing uptrend that could also lead to a correction over time in the near term.

As Diwali Muhurat Trading marks the start of a new Samvat year, investors are encouraged to make selective and strategic investments. Based on expert opinions, 5paisa has highlighted five technically sound stocks to consider in this auspicious session: Reliance Industries, SBI, Bharat Dynamics Limited (BDL), Olectra Greentech and Mphasis. Let’s take a closer look at these recommendations, each backed by solid technical analysis and positioned to potentially generate favorable returns.

Samvat 2081 Stock Picks for Muhurat Trading by 5paisa

Trusted Industries • Buying Range: Rs 2710-Rs 2740 • Support Levels: Rs 2530/Rs 2450 • Potential Targets: Rs 3030/Rs 3250 Reliance Industries, a leader in several sectors, is currently trading near its weekly support level 89 -EMA. The stock has pulled back 50% from its previous uptrend, with the daily Relative Strength Index (RSI) signaling oversold conditions, suggesting a potential near-term rebound. However, it is important to note that Reliance Industries will be subject to a corporate action on October 28, 2024, with a 1:1 bonus issue; as such, price levels will adjust accordingly. This stock remains a good candidate for accumulation on declines, and technical indicators suggest further growth potential.

State Bank of India (SBI) • Buying Range: Rs 800-Rs 820 • Support Levels: Rs 765/Rs 730 • Potential Targets: Rs 915/Rs 970 SBI, India’s largest public sector bank, has recently formed a strong support base at its 200 day EMA. Additionally, the stock broke above a trendline resistance level, signaling renewed momentum in its price action. The RSI oscillator on SBI is pointing towards an uptrend, making this stock a favorable choice for Diwali Muhurat Trading. SBI’s technical setup supports a buy-the-dip strategy, and its fundamentals reinforce its position as a valuable stock for both long-term and short-term investors.

Bharat Dynamics Limited (BDL) • Buying Range: Rs 1000-Rs 1030 • Support Levels: Rs 950/Rs 870 • Potential Targets: Rs 1190/Rs 1300 Bharat Dynamics Limited, a key player in the defense sector in India, stands out for its strong structure technical. Previous breakout levels have turned into strong support zones, and the stock is currently trading around the 50 weekly 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 could be well positioned for an upward move, making it an attractive option for investors looking for strategic accumulation during the Muhurat trading session.

Olectra Greentech Ltd • Buying Range: Rs 1600-Rs 1620 • Support Levels: Rs 1500/Rs 1380 • Potential Targets: Rs 1860/Rs 2040 Olectra Greentech, known for its innovations in electric vehicles and green technologies, has seen a slight correction, with minimal trading volume indicating reduced selling pressure. Currently trading around its weekly support level of 50 EMA, Olectra Greentech’s RSI on the weekly charts showed a positive crossover, indicating favorable momentum ahead. As an environmentally focused company, Olectra Greentech aligns with long-term sustainability trends and its technical indicators support potential growth, making it a promising choice for this holiday season.

Phase • Buying Range: Rs 3080-Rs 3100 • Support Levels: Rs 2840/Rs 2648 • Potential Targets: Rs 3560/Rs 3880 Mphasis, a leading player in the IT services sector, forms a ‘Higher Top’ model Higher Bottom,” which is considered a strong bullish indicator. The 20 EMA on its weekly chart acts as a support level, while the RSI oscillator indicates positive momentum. This technical strength positions Mphasis as an ideal candidate for Diwali Muhurat Trading, especially as the IT sector continues to benefit from global digital transformation trends. With stable technical indicators and positive momentum, Mphasis presents an attractive entry point for investors looking for long-term gains.

Strategy Tips for Trading Muhurat

• Accumulate on dips: For each of these selected stocks, adding dips toward support levels 1 can help investors strengthen their positions as the market stabilizes, allowing for more significant gains as the prices rebound.

• Set stop-loss orders: To mitigate risks, it is advisable to place stop-loss orders just below support levels 2, especially during volatile sessions. This ensures that unexpected downturns will not impact the overall health of the portfolio.

• Moderate Expectations: Given the expected 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 uptrend are ideal for portfolio resilience.

The Diwali Muhurat trading session on Samvat 2081 is more than a symbolic tradition; this represents a valuable opportunity for investors to set the tone for a financially successful year. With technically resilient stocks like Reliance Industries, SBI, Bharat Dynamics Limited, Olectra Greentech and Mphasis, investors can create a balanced and growth-oriented portfolio. Each of these stocks is supported by strong technical indicators providing a stable foundation for those seeking both short-term gains and long-term growth.

As Samvat 2081 unfolds, the stock market is expected to witness a period of consolidation, requiring investors to be patient and make calculated investment choices. This session of Muhurat Trading is the ideal time to seize strategic accumulation opportunities, enabling portfolio expansion and stability in the face of market corrections.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)