The stock market is gearing up for the highly anticipated and much-celebrated annual Muhurat Trading session today, November 1, 2024, from 6:00 PM to 7:00 PM. This special one-hour event is not only a unique market phenomenon but also a significant cultural celebration that marks the beginning of Samvat 2081, the Hindu New Year. Traditionally, this event attracts substantial participation from investors who are eager to embrace the festive spirit and set a positive tone for their trading year.
To kick off the trading session, a pre-opening session will begin at 5:45 PM. It’s essential for traders to be aware that all intraday positions will be automatically squared off 15 minutes before the close of the session, which necessitates meticulous planning for same-day trades. This aspect of Muhurat Trading adds an extra layer of urgency and excitement as participants strategize their moves to capitalize on potential opportunities.
Muhurat Trading transcends the realm of financial transactions; it is deeply rooted in tradition. Investors often make token investments during this time to invoke the blessings of Goddess Lakshmi, the revered goddess of wealth and prosperity. As Trivesh D, COO of Tradejini, aptly expresses, “It’s more about tradition than profits. Many simply buy a few shares to mark the occasion, focusing on sentiment over immediate returns.” This sentiment highlights the event's cultural importance and the collective hope that accompanies the act of trading during this auspicious period.
Reflecting on the past year, it has been nothing short of remarkable for the Indian stock markets, with the Nifty index achieving a stunning return of 25%. This impressive performance has firmly established India as one of the world's top-performing markets, showcasing the resilience and dynamism of the Indian economy. Furthermore, the economy exhibited robust growth, expanding by an impressive 8.2% during FY 2023-24, while inflation remained under control at 5.4%. These positive economic indicators not only boost investor confidence but also underscore India's increasing prominence in a multitude of sectors, including smartphone manufacturing, aerospace, semiconductor production, electric vehicles, and artificial intelligence. This progress underscores India's emergence as a critical global manufacturing and technology hub, further enhancing its stature in the international arena.
Looking ahead into Samvat 2081, market experts are expressing a cautiously optimistic outlook. Projections suggest that the markets could reach levels around 28,400 by Diwali 2025, driven by strong domestic demand, favorable government policies, and India's ongoing development as a global manufacturing hub. However, it is crucial for investors to remain vigilant and exercise caution, especially in light of the recent market corrections that experienced a decline of 6.2% in October. Coupled with significant foreign investor selling totaling Rs 113,858 crores, these factors underline the necessity for prudent investment strategies moving forward. Such caution is especially warranted given the volatility often associated with the post-festive trading period.
For investors contemplating where to allocate their funds wisely, Amit Goel, Group CEO of MarketsMojo, suggests a dual approach to investment planning. For long-term investors, he recommends focusing on sectors that are poised to remain relevant and robust over the next two decades. These sectors include technology, healthcare, renewable energy, and infrastructure, all of which are expected to benefit from ongoing trends and government initiatives. For those seeking shorter-term gains, consumer goods and consumer durables are likely to outperform during and after the festive season, given the anticipated increase in consumer spending during this time of celebration and joy.
Several stocks have garnered significant attention from financial experts for this year's Muhurat Trading session. Centrum Broking has identified Macrotech Developers as a promising buy at Rs 1,082, with a target price set at Rs 1,368, indicating a potential upside of 26%. Tata Consultancy Services (TCS) is also recommended for purchase within the range of Rs 4,085-3,900, with a target of Rs 4,650 and a stop-loss established at Rs 3,700. Another noteworthy stock is Trent, advised for purchase at Rs 7,150-6,950, with an ambitious target price of Rs 8,900 and a stop-loss at Rs 6,300. Jyoti Resins and Adhesive has been highlighted at Rs 1,457, with a target of Rs 1,930, presenting an attractive potential upside of 32%, capturing the interest of many market participants.
From the insights shared by Religare Broking, PTC India is suggested for purchase in the range of Rs 180-182, targeting Rs 237-241, with a stop-loss at Rs 165-170. Bharat Heavy Electricals Limited (BHEL) is another recommended stock, with a buy recommendation at Rs 232-235, targeting Rs 295-300 and a stop-loss of Rs 212. Additionally, NHPC is advised to be bought at Rs 82, targeting Rs 108-110, with a stop-loss at Rs 75.
HDFC Securities has also provided valuable recommendations for discerning investors. Axis Bank is suggested at Rs 1,189-1,210, with targets ranging from Rs 1,332-1,403 and a stop-loss of Rs 1,070. Karur Vysya Bank is proposed for purchase at Rs 214-218, targeting between Rs 249-269 with a stop-loss at Rs 183. Stylam Industries is recommended for purchase at Rs 2,195-2,230, with targets ranging from Rs 2,560-2,690 and a stop-loss set at Rs 1,880.
For investors looking to diversify their portfolios beyond equities, precious metals present intriguing opportunities that should not be overlooked. Analysts are recommending considering GoldBees ETF, which has a target of Rs 83, providing a substantial potential upside of 27%. Similarly, the SilverBees ETF is suggested with a target of Rs 150, boasting an impressive potential upside of 62%. These options can serve as a hedge against market volatility and provide investors with alternative avenues for growth.
While the festive atmosphere surrounding Muhurat Trading is significant, it is crucial not to overlook fundamental investment principles. This occasion presents an excellent opportunity to initiate or expand a long-term portfolio, while simultaneously maintaining a balanced approach across various sectors and investment types. Allocating some funds to precious metals can offer a protective safety net against market fluctuations and downturns.
Despite the likelihood of short-term market volatility, the long-term growth narrative of India remains steadfast and intact. Dr. V K Vijayakumar of Geojit Financial Services advises investors to “focus on stock-specific investments where Q2 results have been good and earnings visibility is bright.” This strategic approach, combined with an astute understanding of market trends, sector performance, and economic indicators, can significantly enhance investment outcomes as participants navigate through this auspicious trading session and the promising year that lies ahead. In the end, Muhurat Trading is not just about numbers; it is about hope, tradition, and the collective aspiration of investors as they step into a new fiscal year, guided by the enduring belief that prosperity and success are within reach.
