Diwali Muhurat Trading: Know timings, track records, trading strategies, and best stocks to buy today

Diwali Muhurat Trading window will be open in the afternoon for the first time in decades due to the beginning of the new Hindu Financial year, Samvat 2082

Diwali Trading Today: On the occasion of Diwali, for the first time in several years, the NSE (National Stock Exchange of India) and BSE (Bombay Stock Exchange) today are transitioning the Muhurat Trading window to the afternoon. The slot time is from 1:45 pm to 2:45 pm on October 21. 

This change is being witnessed due to the beginning of the new Hindu Financial year, Samvat 2082. Typically, the families belonging to the business segment start this auspicious time by performing a special puja, Chopda Pujan. It aims to honour the account books before the implementation of the trades. You can check the timings, track records, strategies, and the best stocks to buy below.

What are the timings?

This year, on Diwali, the Mahurat trading pre-open session will commence from 1:30 pm to 1:45 pm. Later, it will go up to 2:45 pm for the main trading window. The changes in trades are allowed only until 3:45 pm, as the books will close later.

Due to the festivity of Diwali, trading will remain inactive. This makes the Mahurat Window exclusive and unique to carry out all equity-related transactions.

What strategy to follow for Mahurat Day?

The trading strategists are aiming at the 25,900 zone as a short-term goal. Chief Market Strategist of Geojit Investments, Anand James, said that in 5 out of 6 cases over the last ten years, where RSI was more than 55 on Muhurat trading day, the Nifty 50 posted a gain of 1.5% in the next week, and over 4% in the subsequent one. 

The real strategies for trading are in the midcap and smallcap indices, as they have increased by 90%. In addition, more than 70% of sectoral indices have closed in green on the trading day.

Metal stocks have showcased almost 60% probability of providing around 4% gains in the upcoming week after Mahurat and 8.5% in the next month. Realty stocks have tripped after Mahurat. The rate of 50% probability has reduced by almost 5% in the next week. 

What can clients buy?

Some brokerages have mentioned the stocks where they see value. 

Kotak Securities has grouped the following:

• Adani Ports
• Actuaas Chemical
• Eternal
• M&M
• Cummins
• Reliance Industries
• ICICI Bank 

LKP supports the following:

• SBI Cards
• Divi’s Lab
• SBI
• Nykaa
• Bajaj Finance
• Swiggy

The Chairperson and Managing Director of the PL Capital, Amisha Vora, said, ”Valuations are reasonable, earnings downgrades have largely bottomed out, and domestic inflows continue to demonstrate remarkable strength even as foreign investors remain cautious. This creates a favourable setup for Indian equities to outperform in the new Samvat.”