Muhurat Trading 2024: Nifty to open flat, consolidation may continue; HDFC Bank, DLF among top picks | Stock Market News

Muhurat Trading 2024: The annual Muhurat Trading session is regarded as an auspicious occasion for investments, symbolizing stability and prosperity for the future. It offers investors a chance to enhance their wealth and success and diversify their portfolios to begin the new Hindu financial year on a positive note. Last year, on the day of Diwali, frontline indices rose by over half a per cent. 

The Indian stock market created history in Samvat 2080 by achieving several milestones in the last 12 months. The upcoming Muhurat Trading session marks the beginning of Vikram Samvat 2081 after the recent correction phase of the domestic benchmarks amid persistent foreign fund outflows and high valuations.

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On the outlook for Samvat 2081, Ajay Garg, Director and CEO, SMC Global Securities Ltd said, “Looking ahead, we remain optimistic that any market dips can be seen as opportunities for buying. Indian equities continue to showcase a strong long-term growth narrative, with ongoing corporate earnings playing a crucial role in driving market returns, especially considering current valuations.

“However, a careful approach to stock selection, focusing on a balance of growth at a reasonable price and quality, will be vital for achieving favourable returns in the upcoming year,” added Garg. For Samvat 2081, D-Street expects sectors linked to domestic structural and cyclical themes to do well.

Also Read: Diwali 2024 Stock Picks: Tech Mahindra to BEL—Bajaj Broking lists top 5 stocks to buy for Samvat 2081

Sensex, Nifty levels on Muhurat Trading Session 2024

The stock exchanges have scheduled Muhurat Trading on Friday, November 1, 2024, from 6:00 to 7:10 pm. Market participants should note that all intraday positions will be automatically squared off 15 minutes before the session’s close, necessitating careful planning for the same-day trades.

According to Ajay Garg, the Nifty 50 is likely to open on a flattish note and is expected to witness some sideways moves amid a lack of volume activity with limited trading timings. “Technically, we believe that Nifty has a major hurdle at 24500 levels while major support is placed at 24200 levels. The consolidation is likely to continue until the time index is hovering in the mentioned zone,” said Garg.

Also Read: Bears grip D-Street: Nifty logs worst weekly run in 14 months ahead of Diwali; 5 key triggers for Samvat 2081

Sectors and stock to watch out for in Samvat 2081

Indian equities have experienced fluctuations over the past month, primarily due to significant selling by foreign institutional investors in response to escalating geopolitical tensions and discussions about increased investments in China due to stimulus measures. 

“The IT sector is a key area of interest, demonstrating robust earnings performance and ranking among the top sectors to monitor. We believe that the FMCG sector and select stocks in the Auto and NBFC categories also warrant attention as potential opportunities,” said Ajay Garg.

According to Narinder Wadhwa, Managing Director of SKI Capital, the key sectors likely to benefit include banking, financial services, defence, healthcare, FMCG, and real estate. The D-Street expert says these sectors offer a range of opportunities across large, mid, and small caps.

Also Read: Muhurat Trading Strategy: Expect range-bound session, says Rupak De; ITC, HDFC Bank, among five stocks to buy this Diwali

In banking, large-cap stocks like HDFC Bank ( ₹1,630) and ICICI Bank ( ₹955) show resilience with stable balance sheets, while mid and small-cap options such as IDFC First Bank ( ₹92), Yes Bank ( ₹16.9), and IDBI Bank ( ₹65) Jiofin ( ₹321) have growth potential due to digital transformations and credit expansion.

The healthcare sector is also promising, with large-caps like Apollo Hospitals ( ₹5,350) and Dr. Reddy’s Labs ( ₹5,100) benefiting from robust demand, alongside smaller players such as GPT Healthcare ( ₹143) and Albert David ( ₹1,200).

DLF Ltd ( ₹820) leads the real estate sector, recently reporting strong sales due to high demand for luxury projects. Complementing this are firms like Aditya Birla Real Estate, which is seeing growth in urban development projects. 

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Large firms like Bharat Forge ( ₹1,185) and Hindustan Aeronautics Ltd. ( ₹2,020) represent defence and auto ancillaries and benefit from modernization initiatives. In IT, large-cap leaders TCS ( ₹3,580) and Infosys ( ₹1,390) thrive on global digitalization, while smaller tech players like Nazara Technologies ( ₹515), BirlaSoft, First Source, and IdeaForge capitalize on the rapidly growing gaming market .

“These stocks provide a balanced approach across sectors, benefiting investors from stability and growth potential aligned with current economic conditions and market trends,” said Narinder Wadhwa of SKI Capital, a SEBI-registered AIF.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.