Sumeet Bagadia recommends three stocks to buy on Diwali 2023

The Indian stock market displayed a robust recovery and closed higher on Friday, overcoming a weak start. The Nifty 50 index gained 30 points, concluding at 19,425, while the BSE Sensex surged 72 points to reach 64,904. Additionally, the Bank Nifty index finished 136 points higher, closing at 43,820. Notably, broader market indices outperformed the Nifty, resulting in an improved advance-decline ratio of 1.22:1. Sumeet Bagadia, Executive Director at Choice Broking, observed that the Nifty 50 index managed to finish above 19,400 levels following a consolidation phase around 19,400 to 19,450. He indicated that the market sentiment would likely remain cautious until it breaches the 19,650 hurdle on a closing basis.

Sumeet Bagadia

Regarding Muhurat trading stocks for Diwali 2023, Sumeet Bagadia recommended three shares for the short term:

  1. Tata Consumer Products:
    • Buy at ₹912.70
    • Target: ₹960
    • Stop Loss: ₹890

    Tata Consumer shares, currently trading at ₹912.70, exhibit positive technical indicators. The Relative Strength Index (RSI) at 57 suggests a balanced state, and the stock has surpassed its 20-day Exponential Moving Average (EMA), indicating a bullish trend. Trading above key moving averages further reinforces the bullish sentiment. A minor resistance level at 930 could potentially lead to a new all-time high, with a medium-term target price of ₹960.

  2. Grasim Industries:
    • Buy at ₹1945.65
    • Target: ₹2100
    • Stop Loss: ₹1850

    Grasim shares recently experienced a breakout from an ascending triangle pattern on the weekly chart. Strong support at ₹1850 and trading above key Exponential Moving Averages (EMAs) suggest bullish momentum. Technical factors indicate the potential for further upward movement, with a target price of ₹2100 in the near term.

  3. NTPC:
    • Buy at ₹242
    • Target: Expecting sharp upside after breakout above ₹245 levels

    NTPC share price, currently at ₹242, has closed above short, mid, and long-term moving averages. The RSI at 58 indicates balanced momentum. With a sideways to positive bias and notable consolidation, a breakthrough at the key resistance level of 245 could trigger a substantial uptick in the stock price, making it a favorable position for investors.

According to the circular issued by both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), Muhurat Trading for the year 2023 is slated to occur on 12th November, a Sunday, from 6:00 PM to 7:15 PM. This timeframe encompasses a 15-minute pre-market opening session starting at 6:00 PM and concluding at 6:15 PM. The trading activities during Muhurat Trading will encompass various segments, including equity, commodity derivatives, currency derivatives, equity futures & options, and securities lending & borrowing (SLB). Investors will have the opportunity to participate in trading across these segments within the specified time slot.