Muhurta Trading: The festival of Diwali is being celebrated all over the world today. But the stock market is open today and business is going on like normal. There will be a Diwali holiday in the stock market on Friday, November 1 and Muhurat trading session will be organized for 1 hour from 6 pm to 7 pm. Muhurat trading is very important for stock market investors and they consider it very auspicious to buy shares during this time. If you also want to buy during Muhurta trading and are confused about where to invest in the falling market, then here we are going to tell you about the strategy shared by veteran market expert Rahul Sharma.
Concerns increased due to bad results
Rahul Sharma, director and head of technical and derivatives research at JM Financial Services, said there has been a lot of correction in share prices, especially in midcap companies where earnings were below expectations. He said that in the last two years, positive returns have been received during Muhurta trading. However, the disappointing Q2FY25 financial report has raised concerns about a potential earnings decline, making the broader markets appear overvalued.
Advice to focus on large cap stocks
Regarding Muhurat Trading 2024, Rahul Sharma advised investors and traders to focus on large cap stocks. He also suggested to be wise with mid-cap stocks, which offer upside opportunities at reasonable valuations, as high valuations of mid- or small-cap stocks offer the least margin for safety. Rahul Sharma is giving priority to sectors like private financial, metal, capital goods, healthcare and large cap IT. He said that a major part of the reforms in the PSU/industrial sector has ended.
