Intraday trading for Diwali Muhurat session: Key things that you should know

Market


Diwali Muhurat trading strategy 2022: As leading stock exchanges BSE and NSE are gearing up for an hour Muhurat trading session from 6:15 to 7:15 PM on Monday, stock market experts have advised fresh traders to remain cautious as the session is expected to remain highly volatile. Stock market experts suggested intraday traders to maintain strict stop loss and know their pivot levels while taking any position. They went on to add that traders should look at shares from banking, IT, capital goods and manufacturing segments as they are likely to outperform Samvat 2079.

Diwali Muhurat trading strategies 2022

Expecting high volatility during Muhurat trading 2022 session, Anuj Gupta, Vice President — Research at IIFL Securities said, “Global markets have remained highly volatile in last few sessions and it is expected to impact Muhurat trading session today. But, one should know one’s pivot levels and maintain strict stop loss during the one hour trade sessions.”

Unveiling pivot levels ahead of Muhurat trading session today, Rahul Sharma, Director, Head – Technical & Derivative Research at JM Financial Services said, “Nifty is at a crucial inflexion point of 17,600 above which we can expect an aggressive price action with targets of 18,000 to 18,100 in this week. Nifty Futures have witnessed long addition of around 12 per cent in the last two trading sessions while Bank Nifty has witnessed long addition of around 10 per cent. Generally, whenever we witness such addition, markets tend to move in a decisive way. Position sizing guide is advised to be at Large as expect good momentum above 17,600.”

Speaking ahead of Muhurat trading 2022, Nilesh Shah, Group President & MD at Kotak Mahindra Asset Management Company said, “Samvat 2079 is likely to be like Diwali. There will be celebration along with loud busting of crackers. Ukraine, US Fed Rate, Oil, Inflation and Zero Covid policy of China will continue to bust.” He said that banks, capital goods, manufacturing are likely to outperform the market in Samvat 2079. Also, tech and pharma will provide interesting opportunities on a bottom up basis in the correction.

Muhurat trading has made Diwali happier in last 11 out of 15 sessions

Expecting positive response from investors in Muhurat trading 2022, Kanika Agarrwal, Co-founder, Upside AI, said although 11 of the last 15 mahurat sessions have closed in the green so mahurat can be a good day for traders. Perhaps there is a case for “hope arbitrage” where you can go long early in the session and close out positions at the end of the trade.

Diwali Muhurat trading stocks to buy today

On Diwali 2022 stock picks, Anuj Gupta of IIFL Securities said that intraday traders can buy Suzlon Energy and Electronics Mart India shares. He said that Electronics Mart shares can be bought at CMP for 102 maintaining stop loss at 80 whereas Suzlon Energy shares can be bought at CMP for 11 target maintaining stop loss at 6.50 apiece. Anuj Gupta went on to add that long term traders can look at the shares of Federal Bank, Indian Hotels Company, Renuka Sugars, DLF and Coal India as these stocks may double shareholders’ money by Diwali 2023.

On Muhurat trading stocks to buy today, Ravi Singhal, CEO at GCL said, “One can buy Kotak Mahindra Bank for the target of 940 maintaining stop loss at 1870 apiece levels. Similarly, one can buy Punjab National Bank shares at CMP for 44 per share target maintaining stop loss at 38.50 apiece levels.”

On Muhurat trading stocks to buy today, Rahul Sharma of JM Financial Services said, “We have curated a list of stocks for Mahurat trading which can be bought. They are: Ambuja Cement, Axis Bank, Bajaj Finance, Deepak Nitrite, HDFC Bank, India Cement, Infosys, ITC, KPIT Tech, L&T, Reliance and Tata Chemical.”

On large-cap banking stocks that one can look at, Jayesh Bhanushali, Lead – Research at IIFL Securities said, “ICICI Bank and State Bank of India (SBI) shares can be a good bet in fast approaching Muhurat trading 2022 session. One can buy ICICI Bank shares at CMP for 980 target whereas SBI share price may go up to 620 apiece levels.”

Muhurat trading 2022: Time, other details

BSE and NSE has announced that Muhurat trading session 2022 will begin from 6:15 PM and it will end at 7:15 PM. Muhurat trading 2022 would take place across various segments like equity, commodity derivatives, currency derivatives, equity futures & options, and securities lending & borrowing (SLB) in the same time slot. It is believed that trading during the ‘muhurat’ or auspicious hour brings prosperity and financial growth for the stakeholders.

(With inputs from PTI)

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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