Diwali Muhurat 2020 trading date and time: Diwali is supposed to be the most auspicious day when people celebrate and buy new things in India. Historically, Gujarati community, predominantly into the stock market, bought token shares which they intended to keep for long term, sometimes for lifetime.

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Although the tradition has been maintained for decades, but with time, the practice has been changing. So, even though the stock market is closed on Diwali day, it opens for 1 hour in the evening (according to Diwali Muhurat). The purpose, which used to be just to buy, supposedly meant markets would end in green in this 1 hour.

But then there are, of course, people who sell or book profits on Diwali Muhurat as well. Hence, not necessary it always ends in green.

Last year, the market was up 0.4%. In 2018, it was up 0.6%, but in 2017, it was down 0.6%.

Historically, since 1992, the market has ended up 20 out of 28 times (~70%) on Diwali Muhurat day.

Also, Diwali Muhurat day returns have no correlation to what the returns will be in the coming month or year.

This year, it's on Saturday, 14 Nov, 6:15-7:15pm.

Motilal Oswal Technical Picks: Diwali Muhurat 2020 Trading

HDFC:

HDFC stock gave a Rising Channel breakout on the daily chart and sustained well above the same. Motilal Oswal also witnessed a Golden Crossover of 50 DEMA and 200 DEMA, which certainly bodes well for the bulls. RSI oscillator is placed positively on both weekly and monthly charts, indicating strength in HDFC counter. MACD is also suggesting continuation in ongoing positive momentum in the stock. Considering above technical evidence, Motilal Oswal is expecting the rally towards 2600 mark in coming months. Thus, we advise traders to buy HDFC stock in the range of 2240 - 2275 with a stop-loss of 2100.

HDFC Life:

HDFC Life stock took support around the 200 DEMA and started moving higher. It gave a breakout from a Falling Trendline and sustaining well above the same. RSI oscillator is moving northward on both the daily and weekly chart, indicating strength in the counter. MACD is also suggesting positive movement in the HDFC Life stock in coming days. Considering overall chart structure, Motilal Oswal is expecting the stock to move towards the 720 zone. Thus, traders are advised to buy HDFC Life stock in the range of 600 - 610 with stop-loss of 555.

Tata Consumer:

Tata Consumer stock rebounded from its support of 100 DEMA and made Higher Highs from the last three weeks. It is moving above the breakout from a Falling Channel on the daily chart. Nifty FMCG / Nifty Ratio is moving near its major support of 2.45 - 2.50 zone. In the last 5 years, whenever this ratio came close to 2.45, Motilal Oswal witnessed outperformance in FMCG space 3 RSI Smoothened oscillator and MACD indicator on daily scale showing strength in Tata Consumer counter. Considering current chart structure, Motilal Oswal is expecting an up move towards 575 levels. Hence, traders are advised to buy Tata Consumer stock in the range of 490 - 500 with a stop-loss of 465.

Deepak Nitrate:

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Deepak Nitrate stock is moving in a secular bull run from the last four year as we witnessed buying interest on all declines. It formed a Double Bottom pattern on the daily chart and moved above the breakout level.  We also witnessed a positive crossover of 5 DEMA and 20 DEMA, indicating resumption in uptrend.  MACD and RSI oscillator is moving northward and thus strength in the Deepak Nitrate counter. Looking at the current chart structure, Motilal Oswal is expecting the stock to move towards 950 levels. Thus, Motilal Oswal advises traders to buy Deepak Nitrate stock in the range of 770 - 785 with stop-loss of 700.

Kajaria Ceramics:

Kajaria Ceramics stock is moving in an uptrend and making Higher Highs Higher Lows from the last six consecutive months. It gave a Falling Trendline breakout on monthly chart and sustaining well above the same. RSI oscillator is placed positively on both weekly and monthly scale, indicating strength in Kajaria Ceramics counter. Considering overall price structure, Motilal Oswal is expecting continuation in ongoing momentum towards 700 levels. Hence, traders are advised to buy Kajaria Ceramics stock in the range of 585 - 595 with stop-loss of 550.