Muhurat trading, a one-hour session on November 1, 2024, marks the start of Samvat 2081 and is viewed as an auspicious time for investment. This tradition, celebrated during Diwali, invites investors to take positions in the stock market with optimism for the coming year. Both BSE and NSE will be open for trading in various categories, including equities, derivatives, currencies, and commodities.
Portfolio Strategy for Muhurat Trading 2024
According to Amit Goel, CEO of MarketsMojo, Muhurat trading is a prime moment to set the foundation for long-term wealth, symbolically blessed by Goddess Lakshmi, the deity of wealth. Here are some tailored strategies for investors this year:
- Focus on Long-Term Sectors: Investors with a long-term view should concentrate on sectors with staying power in the evolving economy. Technology, healthcare, renewable energy, and infrastructure are prime picks. These areas are expected to drive economic growth over the coming decades, making them ideal for sustainable wealth creation.
- Short- to Medium-Term Gains in Consumer Goods: For those seeking quicker returns, sectors like consumer goods and durables often perform well after the festive season, thanks to increased consumer spending. Companies in these sectors typically report high quarterly earnings post-Diwali, offering potential moderate gains in the months ahead.
- Smart Use of Futures & Options (F&O): Investors involved in the F&O segment can consider hedging or targeted bets in sectors with strong festive demand. Strategic trades can help capitalize on market trends while managing risk effectively.
- Technical Analysis by Prabhudas Lilladher:
- Nifty: The index is currently weak, forming lower tops on the daily chart. Key support is at the 24,000 level, with a further important support level at 23,400 (200-period moving average). Breaking these could indicate a deeper downward trend.
- Bank Nifty: This index faces resistance around 52,400 and has dropped below the crucial 50-day EMA at 51,700, with a bearish bias and support near 50,400.
- Sensex and Nifty Support/Resistance: Sensex’s support is at 78,800, with resistance at 80,000. For Nifty, support is around 24,000 and resistance near 24,400. Investors should watch these levels closely to navigate potential volatility.
- Optimizing Portfolio Balance: This Muhurat trading session is a chance to optimize your portfolio by balancing long-term investments in high-growth sectors with selective, shorter-term trades in consumer-focused stocks. This blend of strategy aims to maximize gains from immediate festive trends while securing investments for lasting growth.
These insights help investors celebrate the festive season by positioning their portfolios strategically, leveraging both the immediate opportunities of Diwali and the promising sectors for sustained growth in the new Samvat year.
Disclaimer: Investments in the stock market are subject to market risks. The strategies mentioned are based on current market trends and do not guarantee returns. Please consult a financial advisor before making any investment decisions.
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