Diwali Muhurat trading 2024: 4 stocks set to shine by next year

As Diwali approaches, many investors are looking forward to the Muhurat trading session, a special time for buying stocks. HDFC Securities has released a list of four stocks that show good potential for returns in the coming year. The Muhurat trading session will be held on Friday, November 1, 2024, from 6 PM to 7 PM, with a pre-opening session starting between 5:45 PM and 6 PM.
Muhurat trading is a unique session conducted by Indian stock exchanges on Diwali, rooted in the belief that this “auspicious hour” is a time to attract prosperity. Many investors, traders, and stockbrokers believe that trades made during this time bring good fortune and mark the beginning of a new and successful financial year. The tradition goes beyond economic gains, as it symbolises the beginning of new ventures with a hopeful outlook.
AXIS BANK LTD
Axis Bank is showing positive signs. The stock has found support near its 40-week Exponential Moving Average (EMA), which is a good indicator of stability. HDFC Securities points out that Axis Bank formed a bullish Hammer candlestick pattern on its weekly chart. This pattern suggests that the stock could be ready for a price increase. A significant bullish candle appeared at the Double Bottom support level of Rs 1,124, which adds to the confidence in a possible upward trend.
The brokerage reports that the weekly stochastic oscillator has turned bullish, indicating rising momentum. The increase in the stock price has been accompanied by a rise in trading volumes, which is another positive sign. HDFC Securities recommends buying Axis Bank within the price range of Rs 1,189-1,210, with target prices of Rs 1,332 and Rs 1,403.
KARUR VYSYA BANK LTD
Karur Vysya Bank also appears to be a strong pick. HDFC Securities suggests a buying range of Rs 214-218, with target prices of Rs 249 and Rs 269. Investors are advised to set a stop loss at Rs 183 to manage risk.
The stock has shown strong support along an upward sloping trend line, which connects the lows from the weeks ending May 12, 2023, and June 7, 2024. On October 18, 2024, the stock broke out from a downward sloping trend line on the weekly charts, indicating a return to a primary uptrend. The weekly stochastic oscillator has turned bullish, and the recent breakout was supported by increased trading volumes. HDFC Securities notes that the stock is forming higher highs and higher lows, which is a good indicator of a positive trend.
STYLAM INDUSTRIES LTD
Stylam Industries is another stock recommended by HDFC Securities. The target price range for Stylam is set between Rs 2,560 and Rs 2,690. The brokerage suggests buying the stock in the range of Rs 2,195-2,230, with a stop loss at Rs 1,880.
HDFC Securities notes that the stock is in a strong upward trend. It has been forming bullish higher top-bottom formations on the weekly chart, indicating consistent growth. The primary trend remains positive, with the stock price above its 20-week and 50-week moving averages. Indicators and oscillators show strength on both weekly and monthly charts. After reaching an all-time high of Rs 2,735, the stock experienced a small pullback, which is considered a normal correction in an overall uptrend. The momentum indicator, MACD, also shows a bullish trend for this stock.
CAN FIN HOMES LTD
Can Fin Homes has been performing well, finding support in the band of Rs 820-828 for the last seven weeks. Despite recent market corrections, the stock has remained stable. HDFC Securities reports that Can Fin Homes is above all important moving averages, suggesting a bullish trend across different time frames. The Relative Strength Index (RSI) oscillator is forming higher bottoms on daily charts, indicating that investors are accumulating shares at lower price levels. The stock is also taking support at the 10 EMA on the Point & Figure chart.
HDFC Securities suggests a buying price for Can Fin Homes in the range of Rs 850-860, with a stop loss at Rs 765 and target prices between Rs 960 and Rs 1,040.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)