Muhurta Trading: Are Sensex, Nifty up in the market; What should investors do?

Last week, the Sensex closed at 59,307.15 with a gain of 104.25 points or 0.18% on Friday. The Nifty 50 closed at 17,576.30, up 12.35 points or 0.07%. heavy shares Like Axis Bank, ICICI Bank, HUL and Kotak Bank were the best performers on account of their Q2 results. Broadly speaking, banking stocks outperformed their peers and led the rally in the overall markets.

Moreover, in the interbank foreign exchange market, the rupee edged higher against the US dollar amid firm domestic equities and continued rise in treasury yields coupled with RBI intervention. After touching the mark of 83, the local unit closed at Rs 82.6750 per dollar on Friday. Over the past six weeks, the domestic currency has lost nearly 4% against the greenback.

Meanwhile, FIIs emerged as net buyers last week with heavy exposure in the last two trading sessions. FII boom on October 21 438.89 crore in equity, while on October 20 – investment was on the tune of 1,864.79 crore. FIIs were selling shares during October 17-19 979.34 crores. That being said, FIIs were net buyers whose influx was 446.56 crore between October 17 and October 21. The selling bias of FIIs has been bearish in the stock market.

Compared to the previous week, the Sensex gained over 1,387 points or 2.4%, while the Nifty 50 gained nearly 391 points or 2.3%, respectively, in the week between October 17-21. Market cap of companies listed on BSE jumped more 4.13 lakh crore in the week ending October 21, 2022 274.42 lakh crores.

Talking about Muhurta trading, the block deal session will start on October 24 from 5.45 pm to 6 pm. Apart from this, the pre-market opening will be from 6 pm to 6.08 pm, followed by normal trading in the market from 6.15 pm to 7.15 pm.

“All trades executed in this Diwali Muhurta trading session will result in settlement obligations,” an NSE circular said.

What to expect from this Muhurta trading?

Dr VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “Even though Samvat 2078 ended with marginally negative returns, the biggest highlight of the year was India’s distinctive performance. While the MSCI World Index and MSCI Emerging Markets Index fell by 23. % and 33% respectively, Nifty outperformed with only marginal cut of 3%. This outperformance in a year of war in Europe and rising inflation and interest rates in the developed world reflects India’s resilience. “

From a market perspective, Vijayakumar believes two factors stand out. First, India’s economic infrastructure is relatively strong. Secondly, DIIs and retail investors have become a force to be reckoned with with a huge increase in FII sales. This trend can be expected to continue.

Geojit Expert believes that this Muhurta trading will be lightened with the help of bulls.

“The Muhurta business will be lit up with fireworks of bulls, who are ready to charge with the support of America’s Mother Market, which was strong last Friday,” he said.

On Friday, US markets closed on a strong note with indices such as the Nasdaq Composite and the S&P 500 rising more than 2%. The Dow Jones rose nearly 2.5 percent. While the Treasury yield benchmark retreated slightly and the dollar slipped against a basket of world currencies.

According to a Reuters report, the Wall Street rally gained momentum when US Treasury Secretary Janet Yellen said inflation was not becoming embedded in the economy, and San Francisco Federal Reserve Chair Mary Daly said it was up to the Fed to move its momentum. It’s time to consider slowing down. increase in interest rates.

Furthermore, on Monday, Asian cues are tracking broadly higher on Wall Street’s upside as the pace of key interest rate hikes by the US Federal Reserve raised hopes of a slowdown.

In Muhurta trading, Vijayakumar said, “Credit growth in the economy is strong and continues to gain momentum, so financials are likely to lead the rally again. However, investors should remain cautious as there are bigger challenges ahead, especially Rising interest rates and the trajectory of the unknown Ukraine war.”

For Samvat 2079, Kotak Securities said in its report, “As the broader market valuations prosper, use the opportunities created by market corrections to add quality stocks (with attractive valuations) from a long-term investment perspective.” can be done.”

In his technical report, Kotak expects the medium-term market structure to be volatile and non-directional, perhaps with traders waiting for breakouts on either side.

In the near future, for Nifty 50 and Sensex, Kotak believes that 16500-16000/55000-54000 will act as a sacred support zone while 18000-18500/60000-61500 will act as a major hurdle zone for bulls It is possible If Nifty/Sensex crosses the resistance of 18500/61500 then it will move towards 19500-20000/64500-66000. On the other hand, a 16000/54000 dismissal could send the market to the 15000/51000 level in the worst case.