The Indian stock market started its annual Muhurat Trading session for Diwali 2024 on a high note, with the Sensex climbing over 400 points, nearing the 80,000 mark, and the Nifty 50 crossing 24,300. This auspicious trading session held each Diwali, marks the Hindu New Year and is thought to bring prosperity and good luck to investors. Muhurat Trading lasts for an hour, typically in the evening.
Rahul Ghose of Hedged. in suggests a conservative options strategy for Nifty, which profits if the index moves below 24,000 or above 24,600 by the November 14 weekly expiry. He recommends buying and selling Nifty options at various strike prices to manage risk, requiring an initial capital of ₹51,000 and aiming for a potential profit of ₹1,500.
Analysts are also recommending specific stocks for Diwali, with Vaishali Parekh of Prabhudas Lilladher suggesting buys in ABB, BEL, Tata Motors, and other high-potential stocks. Meanwhile, Aditya Agarwal of Sanctum Wealth advises a focus on large-cap stocks for more stable returns, while Anand Rathi has highlighted seven stock picks for investors to consider.
Key companies saw gains, with Maruti Suzuki’s shares rising over 1% after reporting record monthly sales in October 2024, and TVS Motor showing a 13% increase in its October sales year-on-year. For the first time, bonds were also made available during the Muhurat session, opening a new option for investors seeking fixed-income securities alongside equities.
Analysts remain cautiously optimistic about market performance in the coming months. Despite a positive historical trend, with Nifty closing higher in eight out of the last ten Muhurat sessions, there is caution due to recent corrections and high valuations. Anand James of Geojit Financial Services notes that prudent stock selection will be key, given potential volatility.
As the Muhurat Trading session continues, these insights provide investors with strategies and recommendations for the Hindu New Year, balancing optimism with a measured approach to market conditions.
