Muhurat Trading 2024: HDFC AMC to LIC India—MasterTrust Broking lists 8 technical stocks to buy at 30% upside

Muhurat Trading 2024: Samvat 2081 is around the corner after Indian stock markets logged a spectacular year with record-high milestones in Samvat 2080. D-Street analysts are widely positive for financials, consumption, technology, and healthcare sectors for Samvat 2081. The Nifty 50 eyes a 12 per cent CAGR between FY24-26 even as the coming months bring in heightened rate cut bets. 

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

Also Read: Diwali 2024 Stock Picks: JSW Energy to Federal Bank — FundsIndia Broking lists these 6 stocks to buy for Samvat 2081

Celebrated on the day of Lakshmi Puja, the Muhurat Trading session is believed to bestow wealth. Traders see it as an auspicious day to initiate new trades and secure blessings from Goddess Lakshmi -- the goddess of wealth, and Lord Ganesha -- the remover of obstacles. Stockbrokers view Diwali as the beginning of the new financial year. The Muhurat Trading session is widely seen as an invitation to bring progress and money for the new year.

In the current market scenario, Vishnu Kant Upadhyay, AVP of Research and Advisory at Master Capital Services of Master Trust Broking, has crafted eight technical stock picks for the upcoming festive session that offer potential returns in the next 12 months. The brokerage has selected quality stocks based on technical parameters expected to offer returns of up to 30 per cent at target levels.

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

Muhurat Trading 2024: 'Shubh Trading' Technical Picks by Master Capital Services

Let's take a look at the top eight technical stocks for Diwali's Muhurat Trading session by Master Capital Services:

1.HDFC AMC: Buy Range ₹4480 and 4300, Stop Loss ₹3815, Targets ₹560; Potential Upside: 25 per cent

HDFC Asset Management Company (AMC) recently broke out of a key horizontal resistance level, supported by a surge in trading volumes. Prices are trading above the 34-week and 55-week EMAs, reinforcing the bullish trend. 

Following the breakout, HDFC AMC witnessed a minor correctional pullback, which brought the prices back to the breakout point. Given the favourable risk-reward perspective, the pullback presents an excellent opportunity for market participants to build fresh, long positions. The overall bullish trend is characterised by higher highs and higher lows in the broader time frame. The RSI also stays well above 50, indicating sustained relative strength of prices.

2.CONCOR: Buy Range: ₹830 and 810, Stop Loss ₹695, Targets ₹1,066; Potential Upside: 28 per cent

Prices have declined nearly 30 per cent from their all-time high but continue to hold above critical horizontal support near the 795 level. They are also trading above the 34-month EMA, which has historically served as a strong support.

The recent correction has been accompanied by reduced trading activity, indicating lower participation in this downturn. The 795-support level aligns with the 61.8 per cent Fibonacci retracement of the previous major uptrend and the 34-month EMA, enhancing the probability of a current price momentum reversal.

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

3.LIC India: Buy Range: ₹915 and 889, Stop Loss ₹787, Target ₹1,128; Potential Upside: 23 per cent

Prices have experienced a 25 per cent correction from their all-time high, but this retracement has occurred with declining trading activity, suggesting a lack of strong selling pressure.

Currently, prices are trading near a key horizontal support zone, increasing the likelihood of a reversal from current levels. “We have seen prices take a U-turn multiple times from the same support zone,” said the brokerage.

The 21-month EMA remains intact, providing further support and reinforcing the bullish outlook for the stock. This combination of technical factors indicates that the recent decline may allow investors to build fresh and long positions.

4.Five Star Business Finance: Buy Range: ₹885 and 821, Stop Loss ₹727, Targets ₹1,027; Potential Upside: 20 per cent

Prices have broken out above the inverse head and shoulder neckline resistance, supported by a significant increase in trading activity, confirming the continuation of the bullish trend. The recent corrective decline has brought prices back to the breakout level, offering a favourable opportunity to initiate long positions. 

The broader trend remains positive, characterized by a consistent pattern of higher highs and higher lows. The RSI holds above its rising trend line support, signalling strong relative momentum. With key moving averages, such as the 34 and 55-week EMAs, well below current levels, the bullish outlook remains firmly intact.

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

5.Tata Power: Buy ₹440 and 422, Stop Loss ₹374, Targets ₹553; Potential Upside: 26 per cent

Stock prices are trading in a rising channel and are drifting around a lower-range value, which strengthens the case for a U-turn. The price holding above the 34-week and 55-week EMAs further reinforces the uptrend.

Diminishing trading volume during corrections, coupled with the weekly RSI consistently holding above the 50 mark, reflects ongoing buyer strength and sustained demand. The monthly chart's MACD is bullish, suggesting the long-term uptrend remains intact. According to the brokerage, further price appreciation and the formation of new higher highs are potential.

6.Bajaj Finserv: Buy Range: ₹1,770 and 1,690, Stop Loss ₹1,485, Targets ₹2,145; Potential Upside: 21 per cent

After a strong breakout from a symmetrical triangle pattern, stock prices experience a corrective dip to retest the descending trendline or breakout point. The key moving averages of 34-week and 55-week EMAs align at this retest level, indicating significant support.

The corrective dip has been accompanied by a decline in trading volume, suggesting that further downside is unlikely, as selling pressure appears to be weakening. Momentum indicators such as the RSI, trading above 50 on the weekly chart, and the MACD, remaining in a positive trajectory, further confirm the underlying bullish sentiment.

7.JSW Steel: Buy Range: ₹960 and 920, Stop Loss ₹810, Targets ₹1,193; Potential Upside: 24 per cent

According to the brokerage, the stock price are moving within a bullish channel, consistently forming higher highs and higher lows while maintaining support above the 34-week and 55-week EMAs, reflecting a strong upward trend.

Following a surge to a fresh all-time high, prices have undergone a healthy 10% correction, retracing to the 0.618 Fibonacci level. This suggests a potential bullish reversal from the current price levels. The weekly RSI remains above 50, indicating continued strength, while the MACD, in a positive trajectory, further supports the underlying bullish momentum and the potential for further upside.

8.Tata Elxsi: Buy Range: ₹7,220 and 6,850, Stop Loss ₹6,060, Targets ₹9,130; Potential Upside: 26 per cent

Stock prices are currently trading near the lower boundary of a symmetrical triangle, and strong support has been found around the 34-month period, which indicates a key level of stability. The monthly RSI remains above the 50 mark, signalling ongoing buyer strength. 

Diminished trading volume during price corrections further reinforces this positive outlook. The current price level offers an appealing risk-reward ratio with limited downside risk. Prices are expected to regain momentum and move toward the upper range of the symmetrical triangle.

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.