Top 5 stocks worth buying for Samvat 2081

As Diwali Muhurat Trading signals the arrival of the New Year of Samvat, investors are advised to take advantage of this auspicious occasion for selective and strategic investments. This period not only embodies tradition, but also serves as a significant gateway to Samvat 2081, a year that promises strategic investments that can facilitate sustainable growth. The equity market has already shown its potential with the Nifty index hitting a high of 26,277 before going through a correction phase last month, mainly due to foreign institutional investor (FII) outflows that crossed Rs 90,000 crore in October.

This recent correction was expected as it coincided with key recovery resistance levels and overbought conditions indicated by the momentum indicators on both the weekly and monthly charts. While this pullback marks a price correction, analysts view it as part of a healthy ongoing uptrend, with a potential temporary correction also on the horizon.

In light of Diwali Muhurat Trading, investors are advised to make selective strategic investments. Based on expert opinions, we have identified five technically sound stocks to consider during this favorable trading session: Reliance Industries, SBI, Bharat Dynamics Limited (BDL), Olectra Greentech and Mphasis. Let’s dive into these recommendations, each of which is backed by solid technical analysis and designed for potentially favorable profits.

Samvat 2081 Muhurat Trading Stock Recommendations

1. Reliance Industries
   • Buy Range: 2710-2740 rupees
   • Support Levels: 2530 rupees/2450 rupees
   • Potential targets: 3030 rupees/3250 rupees

Reliance Industries, a major player in various sectors, is currently trading near the weekly support level of 89-EMA. Having retraced 50% of the previous uptrend, the daily Relative Strength Index (RSI) indicates an oversold condition, hinting at a possible rebound. It is noteworthy that a corporate event is planned for October 28, 2024, which involves the release of bonuses in a 1:1 ratio, which will adjust the price level. These stocks remain a safe bet to accumulate on dips, with technical indicators pointing to further upside potential.

2. State Bank of India (SBI)
   • Buy Range: 800-820 rupees
   • Support Levels: 765 rupees/730 rupees
   • Potential targets: 915/970 rupees

As India’s largest public sector bank, SBI has recently created a strong support base at the 200-day EMA. The stock has successfully broken through trend line resistance, indicating renewed momentum. The RSI oscillator is showing an upward trend, making SBI an attractive choice for trading on Diwali Muhurat. Its technical structure supports a buy-the-dip strategy, and its fundamentals enhance its appeal to both long-term and short-term investors.

3. Bharat Dynamics Limited (BDL)
   • Buy Range: 1000-1030 rupees
   • Support Levels: 950/870 rupees
   • Potential targets: 1190/1300 rupees

BDL, a key player in the Indian defense sector, boasts of a strong technical structure. Previous breakout levels have turned into strong support zones and the stock is currently hovering near the weekly 50 EMA. Low trading volume during the recent correction suggests limited selling pressure, creating a stable price base. This scenario positions BDL well for a potential move higher, making it an attractive option for investors looking to strategically accumulate during the Muhurat trading session.

4. Olectra Greentek, LLC
   • Buy Range: 1600-1620 rupees
   • Support Levels: 1500/1380 rupees
   • Potential targets: 1860 rupees/2040 rupees

Olectra Greentech, known for its innovations in electric vehicles and clean technology, saw a slight correction with minimal trading volume, indicating easing selling pressure. Currently trading near its weekly 50 EMA support level, the RSI on the weekly charts is showing a positive crossover, signaling favorable momentum ahead. As an environmentally-conscious firm, Olectra is aligned with long-term sustainability trends supported by technical indicators that suggest growth potential.

5. Mphasis
   • Buy Range: 3080-3100 rupees
   • Support Levels: 2840 rupees / 2648 rupees
   • Potential targets: 3560 rupees/3880 rupees

Mphasis, a well-known player in the IT services sector, is forming a “high up, high down” pattern, which is a strong bullish signal. The 20-day EMA on the weekly chart serves as a support level, while the RSI indicates positive momentum. This technical strength makes Mphasis an ideal candidate for Diwali Muhurat Trading, especially as the IT sector continues to benefit from global digital transformation trends. With its stable performance and positive momentum, Mphasis represents an attractive entry point for investors seeking long-term returns.

Strategic Tips for Muhurat Trading

• Accumulation on failures: For each stock selected, consider adding dip positions to support levels 1 to bolster holdings as the market stabilizes and maximize potential gains as prices recover.
• Set stop losses: To manage risk, it is recommended to place stop losses just below 2 support levels, especially during volatile trading sessions, ensuring that unexpected downturns do not negatively impact the portfolio.
• Moderate Expectations: Given the expected phase of consolidation in the market, investors should realistically expect moderate growth next year. High-quality stocks that align with the long-term upward trend of the market are ideal for maintaining portfolio sustainability.

Conclusion

The Diwali Muhurat trading session to mark Samvat 2081 goes beyond mere tradition; it offers investors a valuable opportunity to lay the foundation for a financially prosperous year. By focusing on technically sound stocks such as Reliance Industries, SBI, Bharat Dynamics Limited, Olectra Greentech and Mphasis, investors can build a balanced, growth-oriented portfolio. Each stock is backed by strong technical indicators, providing a solid foundation for both short-term gains and long-term growth.

As Samvat 2081 progresses, the stock market is expected to enter a consolidation phase, which will require investors to be patient and make smart investment choices. This Muhurat trading session is the right time for strategic accumulation, helping to expand the portfolio and provide stability in the face of market corrections. Diwali, the festival of lights, symbolizes new beginnings and with expert guidance, you can light up your financial future with prosperity and growth.

(With the participation of the agency)