Diwali 2023: Sumeet Bagadia sees Nifty 50 at 24,000 in long term. Recommends these five stocks to buy on Muhurat trading

Stock market strategy for Diwali 2023

Speaking on Nifty 50 target by next Diwali, Sumeet Bagadia of Choice Broking said, “Nifty is expected to touch 21,000 in next few months whereas in medium term the 50-stock index is expected to go up to 2,500 levels. However, if you talk about Nifty 50 index target by Diwali 2024, I believe that the key benchmark index may go up to 24,000 levels.”

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On reasons for being so bullish on Nifty 50 index, Sumeet Bagadia said, “In India, it has been found in post-Covid rebound that bull market is comparatively longer than the bear market. On an average we are witnessing three bull market and three bear market in 12-14 months. So, after current sell off, we can expect Nifty 50 to touch 21,000 mark in near term bull trend. Once the Indian stock market tops out after immediate bull market, we can expect next bull market in new financial year and in that bull trend, Nifty index may touch 22,500 levels.”

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“Once Dalal Street bottoms out after sell off trigger after second bull market from now onwards, we can expect Nifty 50 to touch 24,000 levels by Diwali 2024 in third bull market which is expected in third quarter of FY25,” said Sumeet Bagadia.

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Stocks to buy on Diwali Muhurat trading 2023

Asked about Diwali 2023 stock picks, Sumeet Bagadia recommended five stocks to buy on Diwali Muhurat trading 2023 — Ramco Cements, Godrej Consumer Products, HCL Technologies, Eicher Motors and Godrej Properties.

1] Ramco Cements: Buy at ₹990 to ₹960, target ₹1130, stop loss below ₹925.

Ramco Cements share price is currently trading at ₹990, has recently broken out of a cup and handle pattern, subsequently undergoing a successful retest at the breakout level. This suggests a strong potential for upward movement in the stock. Furthermore, Ramco Cements share price is trading above its critical 20-50-200 Day Exponential Moving Averages (EMA), indicating a robust and sustained upward momentum. The presence of a well-defined support zone in the range of ₹950 to ₹925 presents attractive buying opportunities.

In the long term, the stock has the potential to reach significant targets of ₹1095 and ₹1130. The rising Average Directional Index (ADX) at 24.13 and a positive Relative Strength Index (RSI) crossover at 66.7 further confirm the optimistic outlook, indicating increasing momentum and a strengthening trend. In light of this technical analysis, it is recommended to consider establishing a buy position in Ramco Cements shares for the medium to long term.

2] Godrej Consumer Products: Buy at ₹97 to ₹1022, target ₹1150, stop loss below ₹950.

Godrej Consumer Products share price currently trading at ₹1022, recently broke out of a four-month falling channel, signaling a potential shift towards a bullish sentiment. The stock is trading above its critical 20-50-200 Day Exponential Moving Averages (EMA), indicating strong upward momentum.

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With a solid support level around ₹950 to ₹970, the stock has historically rebounded from these levels, offering a safety net for potential pullbacks and can act as buying opportunity. The rising Average Directional Index (ADX) at 16 and a positive Relative Strength Index (RSI) crossover at 67 bolster the optimistic outlook, indicating increasing momentum and a strengthening trend.

So based on the above technical structure, we are recommending a buy position in the stock for the medium to long term.

3] HCL Technologies: Buy at ₹1274 to ₹1228, target ₹1450, stop loss ₹1200.

HCL Technologies share is currently trading at ₹1274, and has recently broken out of a Rounding bottom pattern. It successfully retested the breakout level, indicating strong potential for upward movement. HCL Technologies share is trading above its critical 20-50-200 Day Exponential Moving Averages (EMA), which signifies robust and sustained upward momentum. There is a well-defined support zone in the range of ₹1228 to ₹1200, which presents attractive buying opportunities for traders and investors.

In the long term, the stock has the potential to reach significant targets of ₹1400 and ₹1450.The rising Average Directional Index (ADX) at 22.73 and a positive Relative Strength Index (RSI) crossover at 62.88 confirm the optimistic outlook, indicating increasing momentum and a strengthening trend. Given this technical analysis, it is recommended to consider establishing a long position in HCL Technologies shares for the medium to long term.

4] Eicher Motors: Buy at ₹3475 to ₹3325, target ₹3850, stop loss ₹3250.

Eicher Motors share is currently trading at ₹3475, has formed a symmetrical triangle pattern on the daily chart. After a fake breakdown, the price strongly reversed from the 3280 level with significant volume, indicating a potential bullish reversal. Furthermore, Eicher Motors share is trading above its critical 20-50-200 Day Exponential Moving Averages (EMA), which indicates a robust and sustained upward momentum. The presence of a well-defined support zone in the range of ₹3280 to ₹3250 provides attractive buying opportunities for traders and investors.

In the long term, the stock has the potential to reach significant targets of ₹3670 and ₹3850. The rising Average Directional Index (ADX) at 14 and a positive Relative Strength Index (RSI) crossover at 52.33 further confirm the optimistic outlook, indicating increasing momentum and a strengthening trend.

In light of this technical analysis, it is recommended to consider establishing a long position in Eicher Motors share for the medium to long term.

5] Godrej Properties: Buy at ₹1800 to ₹1720, target ₹2010, stop loss below ₹1750.

Godrej Properties share has shown resilience, trading within the ₹1500 to ₹01750 range for four months. A recent breakout above resistance suggests a potential bullish trend. The stock is currently positioned above its 20, 50, and 200-day Exponential Moving Averages (EMA) on both daily and weekly charts, indicating a favorable technical setup.

Since August, Godrej Properties share has displayed a pattern of higher highs and higher lows, indicating a consistent bullish trend. The Average Directional Index (ADX) at 16 and rising further supports this momentum. The Relative Strength Index (RSI) at 67 with a recent positive crossover reinforces the bullish sentiment. With these technical indicators and recent breakout, Godrej Properties share appears to have a positive outlook. So based on the above technical structure, we are recommending a buy position in the stock for the medium to long term.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.

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Updated: 09 Nov 2023, 02:27 PM IST