Shares to buy or sell: Rajesh Palviya suggests these 3 stocks to buy, hold, and accumulate on Muhurat trading today

Stock Market News: The domestic benchmark indices, Sensex and Nifty 50, will not be open for regular trading hours today (Friday, November 1). Nevertheless, the stock exchanges will hold a special trading session, known as Muhurat Trading, for one hour this evening, celebrating the beginning of the new Samvat 2081.

Sensex and Nifty 50, experienced declines on Thursday, marking their poorest monthly performance since March 2020, as unprecedented foreign outflows and disappointing corporate earnings hurt investor confidence.

The Nifty 50 dipped 0.56% to 24,205.35, while the Sensex decreased by 0.69% to 79,389.06.

Both indices experienced a decline of around 6% in October, representing their worst monthly performance since March 2020 when the COVID-19 lockdowns triggered a rapid downturn in global markets.

“Investors were primarily apprehensive over FIIs pulling out over ₹108,633 crore from Indian equities this October month. Blame Thursday’s selling on a solid reading on third-quarter US economic growth and softer inflation data that led market participants to trim their rate-cut bets,” said Prashanth Tapse, Senior Vice President of Research at Mehta Equities.

The positive aspect is that the Nifty 50 concluded Samvat 2080 with a remarkable increase of 24%, and notably, it reached a record all-time high at the 26,277.35 level.

In the short term, everyone will be paying attention to the US Non-Farm Payroll report set to be released on Friday, November 1, while the competition for the White House intensifies as citizens cast their votes on Tuesday, November 5 to choose their next president.

Share Market Tips and Nifty 50 Outlook by Rajesh Palviya, SVP - Technical and Derivatives Research, Axis Securities

Over the past 4-5 weeks, the benchmark index has experienced a sharp profit forming lower tops and bottoms on the daily time frame. Currently, the index is hovering around a crucial support zone at 24,000 levels. If this support is violated on a closing basis, it may lead to further weakness towards 23,800-23,500 levels in the upcoming weeks. Nifty 50 is currently trading below its 20, 50, and 100-day simple moving averages (SMAs), which confirms a bearish bias. Conversely, any relief rally towards 24,500-24,700 levels should be viewed as an exit opportunity for short-term traders.

Fortis Healthcare Ltd (CMP: ₹631)

The stock has decisively broken out of a 5-6 week consolidation range (between 625 and 575) on a closing basis, indicating a resumption of the previous uptrend. This breakout comes with substantial volume, which reaffirms increased market participation. The stock is positioned well above its 20, 50, 100, and 200-day simple moving averages (SMA), and these averages are also rising alongside the price, further confirming the bullish trend. Additionally, the daily Bollinger Bands buy signal indicates increased participation. The daily and weekly Relative Strength Index (RSI) is in positive terrain, supporting the notion of increasing strength.

Investors should buy, hold and accumulate this stock with an expected upside of 665-685 with downside support zone of 613-600 levels.

UTI Asset Management Company Ltd (CMP: ₹1,327)

The stock is currently in a strong uptrend, exhibiting a series of higher tops and bottoms, which indicates a sustained upward movement. Recently, the stock has reclaimed its 20-day and 50-day Simple Moving Averages (SMA) and rebounded sharply, suggesting a positive bias. The Relative Strength Index (RSI) on daily, weekly, and monthly charts is in positive terrain, which supports the notion of rising strength across all time frames. Additionally, significant increases in trading volume indicate greater participation in the rally.

Investors should buy, hold and accumulate this stock with an expected upside of 1,485-1,600 with downside support zone of 1,280-1,200 levels.

Atul Ltd (CMP: ₹7,878)

On the weekly timeframe, the stock has shown a strong trend reversal, forming a series of higher tops and bottoms, which indicates bullish sentiment. It has also recaptured its 100-day simple moving average (SMA) support at 7,434 and rebounded sharply, further supporting the bullish outlook. Additionally, the monthly strength indicator, the Relative Strength Index (RSI), is in bullish terrain, reaffirming the rising strength on larger timeframes.

Investors should buy, hold and accumulate this stock with an expected upside of 8,500-8,840 with downside support zone of 7,640-7,400 levels.

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