Diwali Muhurat Trading 2024: THE Indian stock market navigates through fascinating eras. On the one hand, the country faces headwinds from escalating geopolitical tensions and falling corporate profits. But on the positive side, tailwinds are blowing with the arrival of interest rate cuts and the promise of robust economic growth. The market, caught between these opposing forces, offers both challenges and opportunities to savvy investors.

The day of Muhurat is considered an auspicious time for investments, blessed by Goddess Lakshmi, the deity of wealth. For those investing with a long-term perspective, this day is ideal to begin a journey towards creating lasting wealth.

The start of the Hindu new year, Vikram Samvat 2081, presents an ideal opportunity to reassess portfolios and plan stock market investments. However, to get the most out of it, we need a solid strategy and a clear understanding of what awaits us in the market.

We reached out to five market experts to gather insights on the road ahead, key sectors and stocks to watch, and how to shape our Muhurat Day trading strategy. Here’s what they said:

Ajit Mishra, SVP, Research, Religare Broking

The markets have been in a corrective phase for four weeks and signs of recovery or reversal have not yet appeared.

With the special hour Muhurat Trade In the session scheduled for Friday on the auspicious occasion of Diwali, traders are expected to align their strategies with the current market trend.

On the index front, a decisive close above 24,500 on Nifty could signal a further recovery towards the 24,750-24,850 range, while a break below 24,000 could lead to a test of the long-term support at the 200-day exponential moving average (DEMA). .

For investors, this is a good time to consider accumulating quality stocks on the downside from a medium to long-term perspective.

Our special report for Diwali recommends checking out SBI, ITC, Berger Paints, Titan and Jyothy Labs for potential investments.

Puneet Sharma, CEO and Fund Manager at Whitespace Alpha

Muhurat Trading is more than just a trading session: it is a ritual of optimism. The one-hour session, steeped in tradition, typically attracts low volumes and less volatility, making it a great opportunity for tactical positioning rather than frenetic trading.

So, even if the markets play the cool card, the savvy investor can still have fun with strategic moves like the butterfly options strategy.

While the markets are in a correction phase, it is the perfect time to play smart and not aggressively.

Enter the Butterfly strategy. The butterfly options strategy is a perfect fit for this session. Think of it as a calculated dance in which you limit your risk while positioning yourself for an advantage. Here is the structure:

* Buy a call option with a lower strike price.

*Sell two call options at the mid-strike price.

* Buy a call option with a higher strike price.

This setup allows you to profit if the market remains stable, which is very likely during Muhurat Trading. It’s like flying under the radar, staying within a well-defined range while minimizing your downside risk.

This strategy is important for the following reasons:

1. Low volatility, high precision: Muhurat Trading is not the time to make big moves, and this is where the butterfly spread excels. You are betting on the market remaining in a range, which is usually the case during this session. It’s like planning a party where you already know most of the guests won’t make any noise.

2. Limited risk, defined reward: The beauty of this strategy is that your risk is capped. You know exactly what you’re putting on the table and, in return, you get a defined reward if the market stays where you expect it to.

3. Time Decay Works for You: The options are all about timing, and during this short session, theta decay (time decay) is your friend. Written options will quickly lose value, increasing your potential gains without much effort. It’s like letting time work its magic while you sit back and enjoy.

It is essential to play with risk control in mind in a market going through a correction.

The butterfly strategy when trading Muhurat allows you to engage with the market while maintaining a balanced approach.

It’s not about chasing huge returns, but about having intelligent positioning.

Trivesh D, COO, Tradejini

When it comes to Muhurat trading, there is no particular strategy to follow: it is more about tradition than profits.

Investors tend to take advantage of this token session to make small purchases in the stocks they are watching rather than engaging in active trades or making big plays.

It’s a long-standing practice, and many buy a few stocks to mark the occasion, focusing on sentiment rather than immediate returns.

Amit Golia, Group CEO, MarketsMojo

We recommend focusing on sectors that promise lasting relevance over the next two decades.

These include technology, healthcare, renewable energy and infrastructure, each with the potential to generate significant value in a rapidly changing economy.

For investors interested in short- to medium-term gains, consumer goods and consumer durable goods tend to perform strongly immediately following the holiday season.

With consumer spending increasing, many companies in these sectors often report their highest quarterly profits during this period, which could lead to moderate gains in the months to come.

This approach allows investors to capitalize on immediate trends while positioning long-term investments for sustained growth.

Atul Parakh, CEO of Bigul

Due to the restricted trading time frame, markets frequently face increased volatility during Muhurat trading.

It is recommended that making money is not the main goal. The event offers experienced and new investors a special chance to participate in the market.

Investors are advised to take a long-term view when attending this session.

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Disclaimer: The above views and recommendations are those of individual analysts, experts and brokerage firms, and not of Mint. We advise investors to consult certified experts before making any investment decisions.