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Stocks for Muhurat Trading in Diwali 2023

9 Mins 03 Nov 2023 0 COMMENT
5 Stocks for Muhurat Trading 2023

Selecting stocks for Muhurat trading during Diwali is a personal choice and can depend on your investment goals, strategy, and risk tolerance. Muhurat trading is a symbolic and culturally significant event that you can use to make gains through trading or investing in stocks for long-term investing. In this article, we will list the top 5 stocks to invest in during Muhurat Trading in 2023.

How to Pick Stocks for Muhurat Trading 2023?

Before we list down stock names, it is essential to make sure you understand how to pick stocks for Muhurat trading. The first thing you need to do is define your strategy. Determine your investment or trading strategy for Muhurat trading. Are you looking for short-term opportunities, long-term investments, or simply participation for symbolic reasons? Your strategy will guide your stock selection. Here are ways to pick stocks:

  • Fundamental Analysis: To get good returns, you need to invest in solid companies that are fundamentally sound. Examine key financial metrics, such as revenue, earnings, debt levels, and growth prospects. Assess the company's financial health and stability. Look for companies that have a competitive advantage over their peers.
  • Technical Analysis: If you are investing for a short time, you need to go into technical analysis to find the right entry and exit points. You can use indicators like moving averages to know the right price.
  • Market Trends: You need to do some homework by looking at sectors that are expected to perform well in the coming years. Analyze the performance and potential of different sectors. Look for sectors that align with your investment goals and the current economic landscape. For example, you might consider stocks in sectors like healthcare, information technology, or consumer goods.
  • Expert Opinion: If you are unsure which stocks to pick or need personalized guidance, consider consulting a financial advisor. They can provide recommendations based on your financial goals and risk tolerance.

Here is the last thing we want to say before giving you the list. While Muhurat trading is a cultural and sentimental event, avoid making impulsive or emotionally driven investment decisions. Ensure that your stock choices align with your strategy and risk tolerance.

Top 5 Stocks to Invest for Muhurat Trading 2023

Company Buying Range  CMP  Target Price  Potential Upside  Market Cap   P/E(x)   P/BV(x)   ROE(%)
  % ₹ Crore FY24E FY25E FY24E FY25E FY24E FY25E
 Larsen & Toubro Ltd.  2870-2960  2918  3560  22%  410239  38.9  32.3  4.7  4.1  9.6  12
 Coromandel International Ltd.  1020-1080  1058  1330  26%  31206  16.3  14.9  3.2  2.6  25.5  22.7
 State Bank of India  565-585  572  725  27%  510346  13.1  9.3  1.8  1.5  13.7  16.2
 Spandana Sphoorthy Financial Ltd.  840-890  867  1100  27%  6225  9  8.3  1.4  1.2  16  14.9
 Bharat Dynamics Ltd.  970-1030  1001  1260  26%  18174  35  22  5.2  4.4  15  20

Larsen & Toubro Ltd (L&T)

It is a renowned Indian multinational conglomerate with a strong presence in various sectors, including engineering, construction, technology, and financial services. Founded in 1938, L&T has emerged as one of India's largest and most respected companies, known for its commitment to innovation, engineering excellence, and sustainability.

The company has consistently reported good results. For Q2FY24, they reported a consolidated PAT of Rs 3,223 crore, registering a high growth of 45% compared to the corresponding quarter of the previous year. ICICI Direct has set a target price of Rs 3,560 per share for the company.

Coromandel International Ltd

It is a prominent Indian agrochemical and fertilizer company, that has established itself as a key player in the agricultural sector. With a rich history dating back to 1961, Coromandel is known for its commitment to sustainable agriculture and enhancing crop productivity.

The company's September quarter numbers are still not out. For Q1FY24, the revenue from operations was down 0.6% at Rs 5693 crore in Q1FY24 as compared to the same period a year before. ICICI Direct has set a target price of Rs 1,330 for the stock.

State Bank of India

The company needs no introduction. SBI is the largest and one of the oldest commercial banks in India. Established in 1806 as the Bank of Calcutta, it went through various transformations before becoming the State Bank of India in 1955.

The bank reported a strong set of numbers for Q2FY24, where profits increased by 8% and stood at Rs 14,330 crore. It reported an NII of Rs 39,500 crore. The asset quality has also improved for the bank, which makes it attractive at the current price. ICICI Direct has set a target price of Rs 725 per share.

Spandana Sphoorthy Financial Ltd

It is a notable microfinance institution based in India. Founded in 1998, it has played a pivotal role in providing financial services to underserved and economically disadvantaged communities in the country. Spandana focuses on offering microloans and other financial products to empower women and families at the grassroots level, promoting financial inclusion and socioeconomic development.

For Q1FY24, the Profit After Tax (PAT) reached Rs 119 crore year-on-year against a loss of Rs 220 crore during the corresponding quarter last fiscal year. The net interest income (NII) touched 102%, and the assets under management (AUM) grew 60% to Rs 8,848 crore during the period under review. ICICI Direct has set a target price of Rs 1,110 per share.

Bharat Dynamics Ltd

It is a prominent defense public sector company in India. Established in 1970, BDL primarily focuses on the design, development, and manufacture of advanced defense systems and strategic weaponry. The company reported its results last week. The profit reported was Rs 147 crore in the quarter ended September, in comparison with Rs 75.8 crore over the same period last year. ICICI Direct has set a target price of Rs 1,260 per share.

Recent Trends on Muhurat Trading 2023

Markets have witnessed gains in the last four Muhurat trading sessions since 2018. BSE’s benchmark index Sensex surged 0.88% in 2022, 0.49% in 2021, 0.45% in 2020, and 0.48% in the 2019 Muhurat trading session.

While Muhurat trading is a much-loved convention among traders and investors, it is prudent to remember that the market can be volatile during this short trading window. Hence, if you seek the best stocks for Muhurat trading, it is advisable to focus on the company’s fundamentals and assess the market sentiment before investing. Approach the session with preparation and due diligence and adhere to risk management practices while trading. It is also imperative to align your Diwali Muhurat trading stocks picks to your unique investment objectives and risk appetite.