Diwali's Trading Impact
The Diwali Muhurat trading session of 2025 saw a bullish trend, with the Sensex and Nifty indices reaching fresh all-time highs. This positive momentum
was followed by profit-booking, a common occurrence after significant gains. The event highlighted the robust activity and investor sentiment surrounding the festive period. This trading session is a special event, where investors believe that trading during this time brings wealth and prosperity. Market experts often analyze the session to gauge future market trends and identify potential investment opportunities. The performance during the Muhurat trading is viewed as a precursor to the market's performance in the coming year.
Expert Stock Picks
Several market analysts and brokerage firms provided recommendations, guiding investors on potential stocks to watch. Ruchit Jain of Motilal Oswal recommended Hindalco, suggesting it could provide quick returns. Ajit Mishra from Religare also offered a bullish outlook on Bajaj Auto, indicating a potential for a positive reversal. Shitij Gandhi from SMC Global advised accumulating Dr. Reddy’s, while also backing Jindal Steel & Power for a rally over 5–7 weeks. Rajesh Palviya provided insights on various stocks, including Ashok Leyland, supported by strong volumes and RSI momentum, and HAL, benefiting from a breakout and strong volumes.
Technical Analysis Insights
Technical analysis played a crucial role in evaluating market trends and providing investment recommendations. Kkunal V. Parar noted support at the 100-DMA and an RSI above 50, indicating potential gains in Astra Microwave. Choice Broking suggested a bullish outlook on NBCC due to strengthening momentum. Technical setups supported accumulation in Nykaa, with Axis Securities eyeing Rs 1,400–1,440 levels for Paytm. Rajesh Palviya pointed to strong volumes and a channel breakout in M&M, keeping the stock in a bullish zone. The analysis underscored how technical indicators help in forecasting potential market movements and opportunities.
Market Sentiment Overview
The overall market sentiment remained largely positive, driven by several factors. Consumer stocks gained momentum, and experts expected Titan to rise towards Rs 4,190. Market participants remained optimistic as the market saw new heights being hit. The festive season and its associated buying behavior typically fuel this positive sentiment. Factors such as corporate earnings and economic data also significantly contribute to the overall mood in the market, further influencing investment decisions. Positive news surrounding the Ram Mandir project also impacted the market sentiment.
Key Market Events
Several major events influenced the market's performance. The listing of LG Electronics India on the NSE, with a 50% surge on debut after a $1.3 billion IPO, showcased investor confidence. There was also a discussion around the potential impact of GST 2.0 amid the Diwali festivities, with key figures participating. The US Fed cutting interest rates by 25 bps, along with Jerome Powell’s hints of further cuts, were major global drivers. Market observers consistently monitor these major happenings as they provide a context for market behaviour.
Economic Indicators Influence
Economic indicators and news also played a role in shaping market dynamics. The release of CPI Inflation hitting an 8-year low impacted investor behaviour. Concerns surrounding potential trade tariffs and their impact on India contributed to market volatility. Discussions on India’s reworking of oil imports under US pressure and the ongoing discussions between Trump and China on trade and tariffs were other key areas of consideration. The interplay of these economic elements and market performance underscores the need for a comprehensive perspective when analysing market trends.
