Stock exchanges will open for an hour this Diwali for the ‘Muhurat’ trading session on November 4. BSE and NSE will allow investors to buy and sell stocks from 6:15 PM to 7:15 PM on Diwali. The muhurat trading session is held every year on the occasion of Diwali, for an hour. The broking community performs Lakshmi Puja and trade during this period. The muhurat trading session has a block deal session prior to normal trading and is followed by a closing session. Last year, BSE Sensex gained 145 points to end at its highest ever closing tally at that time while NSE Nifty 50 closed below 12,800.

When is Muhurat trading?

According to a notification by NSE, the block deal session will start at 5:45 PM on November 4 and close at 6 PM. This will be followed by a pre-open session between 6 PM and 6:08 PM. The normal market will be open from 6:15 PM to 7:15 PM, followed by a Call Auction Illiquid session and a closing session. All trades executed in this Diwali Muhurat trading session shall result in settlement obligations. 

Why is Muhurat trading done?

Muhurat trading holds a special significance as it marks the beginning of a new year or ‘Samvat’. Investors believe muhurat trading brings wealth and prosperity throughout the coming year. The practice was started in 1957 on the BSE and in 1992 on the NSE. Going by recent market movements on muhurat trading, Sensex and Nifty usually end soaring higher during this special trading session. This muhurat trading will mark the beginning of Samvat 2078.

Stock picks by Choice Broking

Tata Steel: BUY

Target: Rs 1480/1700

Tata Steel has been trading in the higher territory with good volume activity, confirming the bullish trend for the long-term, according to Sumeet Bagadia, Executive Director, Choice Broking. “Moreover the price has traded above 50 and 100 weeks simple moving averages and also hovering above Ichimoku Cloud Formation, which supports the bullish trend for the medium to long term,” he said. Currently, the stock is trading at Rs 1342 per share.

HDFC Bank: BUY

Target: Rs 1850/2130

Analysts said that HDFC Bank stock has taken good support at 61.8% price extension and moved above 78.2% levels of its prior rally. “The stock has been trading upward with volume. In the recent week, it has moved above the prior swing high of 1641 levels, which indicates positive strength after a resistance breakout,” they said. HDFC Bank shares were trading at Rs 1653 per share on Tuesday.

Manappuram Finance: BUY

Target: Rs 220/245

“On a weekly chart, the stock has taken support at Rising Trendline & also formed the Bullish Engulfing pattern in the prior trades and confirmed the further breakout, which indicates a bullish strength in the prices,” Sumeet Bagadia wrote in the note. The stock is also witnessing higher volume during the last few weeks, supporting the upward march of the stock. The stock is currently trading at Rs 204 per share.

HCL Technologies: BUY

Target: Rs 1370/1480

The IT major’s stock price jumped nearly 50% from the end of April till the last week of September but has since seen some profit booking. “The stock has taken support from the horizontal line, which indicates a reversal move in the price. Furthermore, the stock has been trading above 100 DMA, which saw a positive trend for the time being. HCL Technologies is currently trading at Rs 1,166 per share.

Raymond: BUY

Target: Rs 520/590

The stock has been rising continuously with Higher Highs and Higher Lows formation from the last couple of weeks, suggesting an upward momentum for the long-term, said Sumeet Bagadia. “Furthermore, on a daily chart, the Middle Band of Bollinger & 50% Fibonacci Retracement level provides immediate support to the price, which indicates a further reversal in the counter,” he added. Raymond share price settled at Rs 452 per share on Tuesday.