Ahead of Diwali, the festive cheer seems amiss on Dalal Street, with Nifty witnessing a significant correction in the month of October. The benchmark index has fallen 7 per cent from its all-time high hit in late September. This pullback presents a strategic buying opportunity as the market shows signs of stabilising, potentially nearing the end of this corrective phase. This downturn offers long-term investors a chance to accumulate quality stocks at appealing valuations, as per experts.
If Nifty holds above the key support range of 24,000-24,200, it could establish a solid foundation for future gains, they said. Projections suggest that Nifty could reach 26,500 and 28,000 by Diwali 2025, providing notable upside for investors positioning themselves amid the current correction.
HDFC Securities has listed four technical stock picks for Muhurat trading. Let's take a look.
HDFC Securities observed that the stock has been consistently finding support near its 40-week exponential moving average (EMA). The stock recently formed a bullish hammer candlestick pattern on the weekly chart, accompanied by a bullish reversal signal at the double-bottom support level of ₹1,124, enhancing the pattern’s reliability. Additionally, the weekly stochastic oscillator has turned positive, while the price increase was supported by rising volumes. HDFC Securities further noted that the stock price has been forming higher tops and higher bottoms on the monthly charts, signalling a continued upward trend.
HDFC Securities noted that the stock price found support along an upward-sloping trendline, connecting the lows from the weeks ending May 12, 2023, and June 7, 2024. In the week ended October 18, 2024, the stock broke out from a downward-sloping trendline on the weekly charts, signalling a resumption of its primary uptrend. The weekly stochastic oscillator turned bullish, and the breakout was accompanied by a rise in trading volumes. HDFC Securities also highlighted that the stock has been forming higher tops and higher bottoms on the weekly charts, reinforcing a positive trend.
HDFC Securities stated that the stock is in a strong uptrend, exhibiting a bullish higher-top, higher-bottom formation on the weekly charts. The primary trend remains positive, with the stock price positioned above its 20- and 50-week moving averages. Indicators and oscillators are also showing strength on both the weekly and monthly charts. Following an all-time high of ₹2,735, the stock experienced a corrective pullback, which HDFC Securities views as a running correction within the broader uptrend. Additionally, the MACD momentum indicator shows a bullish trend for the stock on the weekly charts.
HDFC Securities noted that the stock has consistently found support within the 820-828 range over the past seven weeks. Despite recent sharp market corrections, the stock has shown resilience, remaining above all significant moving averages, which signals a bullish trend across all time frames. The RSI oscillator has been forming higher bottoms on the daily charts, suggesting accumulation at lower levels. Furthermore, on the Point & Figure chart, the stock has been supported by the 10-day EMA.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
