Diwali Muhurat Trading 2022: On penultimate session of Muhurat Trading 2022, Indian stock market finished on higher note for sixth straight session. NSE Nifty edged 12 points higher and closed at 17,576 whereas BSE Sensex surged 104 points and ended at 59,307 mark on Friday. However, rally in banking stocks was remarkable as Nifty Bank index shot up 1.71 per cent and closed at 40,784 levels. Seven banking stocks — Axis Bank, Bank of Baroda, Federal Bank, IDFC First Bank, Indian Bank, South Indian Bank and Karnataka Bank climbed to 52-week high on Friday. In fact, out of these 7 banking stocks, Axis Bank and Federal Bank hit its life-time high on Friday session.
Sanjiv Bhasin, Director at IIFL Securities believes that global stocks including Dalal Street is trading volatile as UK Prime Minister’s resignation provided support to dollar index. However, the IIFL Securities expert expected bounce back in Chinese and Hing Kong’s stock market as they are in oversold position.
On reason for volatility in global markets, Sanjiv Bhasin of IIFL Securities said, “Asian stocks opened red on Friday after muted display being seen at Japanese Nikkei. The uneasiness on yields & resignation of UK Prime Minister has seen US dollar move higher. This has put pressure on Asian currencies. Expect a bounce from oversold Chinese stocks. Hang Seng & Shanghai index are extremely oversold currently.”
Sanjiv Bhasin’s stock market strategy for Diwali 2022
Speaking on technical outlook of Nifty, Sanjiv Bhasin said, “Nifty is likely to find support at around 17350. 17650 is likely to act as resistance. Bank Nifty is likely to find support at around 39800. 40700 is likely to act as resistance on the upside.”
On options front (27th October 2022 expiry), Sanjiv Bhasin of IIFL Securities said, “In Nifty, out of the money options have seen an increase in writing. Hence, we expect Nifty to trade in a range bound manner between 17500 and 17700.”
Diwali stock picks 2022: Sanjiv Bhasin’s shares to buy
Short Term (2-3 days): Buy Canara Bank at 257-260. Stop Loss: 253. Target: 268.
Trading ideas (Time period: 1- 2days): Buy Tata Consumer October future at 770-775. Stop loss: 756.45. Target: 788.
Derivative Strategy (Time Period: 1 month): Buy IndusInd Bank November future at 1165-1170. Stop loss: 1143.55. Target: 1195.
One hour Diwali Muhurat trading session will take place from evening 6:15 PM to 7:15 PM on Monday, 24th October 2022.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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