Stocks to buy for Muhurat Trading in Diwali 2023

The selection of stocks for Muhurat trading during the Diwali Festival is a personal decision based on your investment goals, strategies, and risk tolerance. Muhurat trading is a symbolic and cultural event that you can use to profit from trading or investing in stocks. Read this article to find out the top stocks to invest in during Muhurat Trading 2023.

How to identify stocks to trade in during Muhurat Trading 2023?

Stocks for trading during Muhurat Trading should be selected in the same way as on other days. To make the right investment & trading decisions, you can do the following:

• Fundamental analysis:

  Fundamental analysis of a company means analysis of its financial performance, business model and future growth prospects. If you are holding the stock of a company and fundamental analysis reveals that its prospects and performance have weakened, then you can sell that stock. On the other hand, if fundamental analysis reveals that the prospects of the company are good, then you can buy the stock of the company.

• Technical analysis:

  Technical analysis is based on the movement in prices and volumes of stocks in the most recent past such as over the past few days. It takes into account the support and resistance levels that are prevailing for a stock currently. If technical analysis & indicators reveal that the stock price may go up in the very near term, then that stock can be bought. If the technical analysis reveals that the price of a stock is likely to go down, then you can sell that stock or not buy it.

• Taking our recommendations:

  IIFL Securities is a full services brokerage firm. We have a team of experts that can give you advice on which stocks will be best for trading & investment on this Muhurat trading day.

Some of our stock recommendations for Muhurat Trading, 2023

• NTPC: Buy NTPC in the range of 228-245. Target Price: 271. Expected return: 16%.
• Bharti Airtel: Buy Bharti Airtel in the range of 865- 940. Target Price: 1044. Expected return: 18%
• JB Chemicals: Buy JB Chemicals in the range of Rs. 1350-1510. Target Price: 1595. Expected Return: 16%.
• JSW Energy: Buy JSW Energy in the range of Rs. 358-385. Target Price: 450. Expected Return: 22%.

To check all our Diwali recommendations, become a customer of IIFL Securities by opening a demat account using our website or with demat account app

Rationale for the above recommendations

Power demand will go up in the foreseeable future. NTPC is a leader in the thermal power generation segment. Its financial performance in recent years has been good. Our estimate is that it will give Return on Equity (RoE) of around 13% in FY 2024 and FY 2025.

Bharti Airtel has gained from the consolidation in Indian telecom industry. Weakening of Vodafone Idea has also benefited the company. The company has been able to successfully weather the onslaught of Jio. It is taking a number of steps for improving operational efficiency. Its profits may go up with improvement in operational efficiency. Our estimate is that in FY 24 it will give an ROE of around 11% and in FY 25 of around 18.5%.

JB Chemicals is showing strong performance in terms of growth in market share in the Indian Pharmaceuticals market. It introduced 17 new products in 2023. Our estimate is that it will give ROE of 21% in FY 24 and of 23% in FY 25.

JSW Energy is in the process of expanding its power generation capacity from 6.6 GW to 9.77 GW by 2026. It is also among the leaders in energy storage technology. Our estimate is that its net profit will double over the next 2-3 years.

Disclaimer: Investment in stocks is subject to market risk and other risks. There is no guarantee regarding the returns that investment in stocks will give.