Samvat 2080 marks the start of a brand new Hindu 12 months or Vikram Samvat. It is taken into account auspicious for inventory market traders and marks a recent begin for them.
Muhurat buying and selling is a one-hour particular buying and selling session performed on the day of Diwali and is taken into account auspicious for buying and selling within the Indian monetary markets. During this session, merchants and traders take part within the inventory market buying and selling for a brief interval to hunt blessings for prosperity within the coming 12 months.
Most Hindu traders take blessings of Goddess Laxmi by worshiping their books of account on eve of Diwali and begin new account books for the subsequent enterprise cycle.
Historical Performance: Muhurat Trading Days Make Diwali Happier For Bulls
In the final 10 Muhurat buying and selling days, Sensex has given constructive returns eight occasions as each merchants and traders take pleasure in token shopping for.
Last 12 months’s Diwali was the very best lately with the index ending 524.5 factors larger whereas the worst Muhurat day was in 2017 when Sensex ended 194 factors decrease. The different 12 months when the fairness benchmark fell was in 2016.
All the final 5 Muhurat buying and selling days have made Diwali happier for bulls.
Besides the bullish seasonality seen through the pageant, analysts are additionally declaring that the market usually performs positively forward of Lok Sabha elections. In the final 25 years, Sensex has by no means given a destructive return six months earlier than the election.
“The average gains of Nifty during these five elections is 26.4% six months prior to the results are announced. The highest returns were before the 2009 elections results with 61.1%. The lowest return was of 8.7% in 2004 elections. With US bond yields hitting a roadblock of 5% and only six months remaining for the election results we are poised for yet another upmove,” Apurva Sheth, Head of Market Perspective, SAMCO Securities, stated.
How Did The Stock Market Perform In Samvat 2079?
Jigar S Patel, Senior Manager – Technical Research Analyst, Anand Rathi Shares and Stock Brokers, stated: “The year went by with resilience and all-time highs for key benchmark indices, despite global turbulence like high interest rates, rising bond yields, crude oil prices, and the Middle East crisis.”
“Nifty has been in a solid uptrend on the monthly charts. The index took out a 19-month consolidation, which pushed it towards 20222, which was its all-time high. Though Nifty saw some correction but not a major one during the year, before continuing its major uptrend, we may see a small correction until 18500 in the coming time,” Patel added.
Apart from Nifty IT, different sectors like auto, FMCG, pharma, and metals are hovering close to the highest, which can name for reserving revenue within the coming months, he stated.
Muhurat Trading Strategy
The Indian economic system at the moment finds itself in a candy spot of development and is effectively-poised for continued resilience within the face of world challenges. Samvat 2080 might be fairly an interesting 12 months to be careful for the worldwide economic system, analysts stated.
Pranav Haridasan, MD & CEO, Axis Securities, stated: “We embark on this new Samvat with a narrative marked by ‘Higher for Longer’ interest rates, volatile bond yields, geopolitical conflicts in the Middle East, and fluctuating oil prices. However, on the domestic front, the prospects for the Indian economy appear notably brighter and more promising. Amid a volatile global landscape, India remains in a favourable position for growth, which will be a significant driving force behind Indian equities in the foreseeable future. The improvement in the balance sheet strength of corporate India and the much-improved health of the Indian banking system are other positive attributes. They will ensure that Indian equities readily deliver double-digit returns in the next 2-3 years with the support of double-digit earnings growth.”
According to Harjeet Singh Arora, Managing Director at Mastertrust, meticulous planning is crucial, notably throughout the brief time-frame of Muhurat buying and selling.
“We have to clearly outline our financial goals whether we are looking for short-term gains or long-term investments. Usually, we witness volatile trading sessions hence thorough research is very important before deploying any trade,” Arora stated.
He advises traders to search for corporations with robust fundamentals, constructive earnings reviews, and development potential. Additionally, they’ll additionally commerce on shares based mostly on technical research for brief-time period buying and selling alternatives.
Arora emphasizes the significance of threat administration whereas investing.
“Risk appetite varies from individual to individual, for long-term investment, portfolio risk could be mitigated by proper diversification. Investors are not recommended to concentrate all investments in one stock or sector,” Arora stated.
For intraday merchants, liquidity is a giant issue given the brief length of muhurat buying and selling. Hence, he recommends intraday merchants to decide on shares with adequate liquidity to make sure easy execution of trades.
Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher Pvt. Ltd, stated: “Nifty index as of now has moved past the crucial barrier of 19200-19250 zone with decent pullback witnessed from 19000 zone and upside we have the next major hurdle near 19500-19550 zone which needs to be breached decisively to establish conviction and confirm for furhter upward move. For Muhurrat Day trading one can go for select quality stocks of the likes of CDSL, BHEL, ZYDUS LIFE, EXIDE, TATA MOTORS for the short term time frame investment. Along with active participation already seen among the broader markets, if Nifty index once gives a confirmation above 19550 zone shall furhter strengthen the trend anticipating for strong upward movement of the index.”
Commodity buying and selling
In the commodities market, shopping for valuable metals reminiscent of gold and silver is taken into account auspicious throughout Diwali Muhurat buying and selling.
Commodity market consultants consider traders ought to search for long run beneficial properties moderately than betting on brief time period beneficial properties within the commodities market.
“Trading in commodities should be done for the long term. Gold, silver and other metals have given strong returns since last Diwalo. Investors tend to make more money by investing in commodities for the long term,” stated Ajay Kedia, Director, Kedia Advisory.
Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart Ltd., stated: “Inflation has risen rapidly in the global economy, and gold is the best asset class to hedge against inflation. However, the US Fed and other major central banks have started increasing their interest rates to control rising inflation, but the higher borrowing costs are damaging global growth. Currently, interest rates in the US are at 5.5%, which is quite high, and further increases in interest rates may cause economic turmoil. Although an interest rate cut is expected in mid-2024, it may support gold prices. The ongoing geopolitical tension and fear of recession have elevated the demand for safe havens, and this may continue into 2024. We are expecting the gold prices to move towards $2250 in the Comex division, while in MCX, prices may move towards 64,000 to 66000 per ten grams in the year 2024. The gold prices have crucial support at 56000. Silver prices also move upward and may test 78000 to 80000 per kg levels in the upcoming year.”
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