Diwali is a festival of lights that also symbolizes the triumph of light over darkness, good over evil and knowledge over ignorance. It is one of the most significant and auspicious festival celebrated in India. It is a time when people renovate and decorate their homes and offices, as well as buy utensils or precious metals, generally gold or silver, to bring in good fortune. Gifts are also offered to friends, relatives, business partners, and everyone else with a warm desire. People worship Lakshmi Ji, the goddess of wealth and prosperity, and Ganesh Ji, the deity of knowledge and the remover of obstacles on this day, with numerous more regional traditions linking the festival to Sita and Rama, Vishnu, Krishna, Durga, Shiva, Kali, Hanuman, and Kubera.
What is Muhurat Trading?
Muhurta is a Hindu unit of time, and Diwali is the New Year in India according to the Hindu calendar religion. Muhurat is a timeframe in Hindu rituals when the planets are aligned favourably to ensure favourable results. Muhurat trading began on the Bombay Stock Exchange (BSE) in 1957, while the National Stock Exchange (NSE) began in 1992.
The BSE and NSE allow trading for a limited period; it is believed that Muhurat trading brings prosperity and fortune for the rest of the year. The trading community recognises Muhurat trading hours as favourable for investing. Market participants opt to buy specific stocks during this auspicious session for cultural, emotional, and religious reasons.
|Muhurat Trading Session||Timings|
|Block Deal Session||5:45 pm – 6.00 pm|
|Pre-Open Market||6.00 pm – 6.08 pm|
|Normal Market||6.15 pm-7.15 pm|
|Call Auction Session||6.20 pm – 7.05 pm|
|Closing Session||7.15 pm – 7.25 pm|
Equity segment muhurat trade timings
Diwali Stock recommendations.
- NCL Industries Ltd.
- Banswara Syntex Ltd.
- Prakash Pipes Ltd
- Rain Industries Ltd.
- Oil India Ltd
- Shriram Pistons & Rings Ltd.
- National Aluminium Company Ltd (NALCO)
- GAIL India Ltd.
- Nahar Spinning Mills Ltd.
- Star Paper Mills Ltd.
NCL Industries Ltd (CMP – 177.50)
The Company is principally engaged in the business of manufacturing and selling of Cement, Ready Mix concrete (RMC), Cement Bonded Particle Boards (CBPB), Doors, and operates two Small Hydro Power (SHP) projects. The Company has manufacturing facilities in the states of Telangana, Andhra Pradesh, Karnataka and Himachal Pradesh of India and caters mainly to the domestic market. Company is the only manufacturer of Cement Bonded Particle Boards (CBPB) in the country. Bison Panels are normally used for construction of prefab structures and have been extensively used in the infrastructure and housing sectors. The company recently introduced sandwich panel board as an add on product to Boards units. These boards are gaining popularity, and the demand is steadily growing. To meet the incremental demand, another sandwich panel board unit is being set up near Hyderabad. RMC is a natural adjunct to the cement industry. Over the past decade, more and more cement manufacturers have been opting for setting up their in-house RMC units as an outlet for their main product of cement, and also to retain and propagate their brand image.
Banswara Syntex Ltd. (CMP – 99)
BANSWARA is one of the largest single-mill set ups of fibre-dyed yarn in ASIA. Over the years, they have forayed into markets in over 50 countries including the U.S., U.K., Canada, Germany, Japan, France, etc. The company has diversified offerings in textiles and technical fabrics. Due to their varied and highly specialised product range, company is able to service a number of highly reputed fast fashion brands like Uniqlo, Calvin Klein, Marks and Spencer, Next, etc. The core business of the Company is manufacturing and marketing of spun synthetic blended yarn, wool and wool mix yarn, spun synthetic and worsted fabrics and cotton & linen fabrics besides readymade garments. The Company also produces shirting and technical fabrics. Tesca Textiles and Seats Components (India) Private Limited, the Joint venture Company, is producing automotive fabrics. Company’s future growth is built on two parallel growth drivers viz., domestic consumption of fabrics & garments and large global opportunities in textiles and clothing. Macro factors like China + 1 strategy, the Ukraine War, the Sri Lankan crisis, etc., have opened up further avenues for the company. Further, garment capacities have shrunken throughout the world, leading to additional demand for your company’s products. The opening of offices as well as removal of restrictions on wedding and other functions, has brought in remarkable demand for the company’s products.
Prakash Pipes Ltd. (CMP – 170)
When they demerged their Company a few years ago, they extended from manufacturing PVC pipes to flexible packaging, broad basing the company’s dependence from one business (and limited influence) to two businesses (wider influence). The result is that the company enhanced organisational stability that enhanced the predictability of their operations and services. They see the Company as an attractive proxy of the growth of the agricultural sector on one hand and the FMCG consumer spending on the other. The company believes that the sectors are poised for sustainable growth for various reasons: increased focus on water security, agriculture infrastructure and farm profitability for the PVC pipes & fittings sector; enhanced attention being paid to product shelf-life and content freshness for the flexible packaging sector. By the virtue of a large addressable market, debt-lightness and accruals deployment in business growth, the company expects to enhance revenues by ~20% CAGR in the next two years and generate superior long term value for our shareholders. The presence across five states with over 1000 distribution and retail counters made it possible to penetrate regions of emerging demand. The Company increased the installed capacity from 5400 MTPA to 9600 MTPA. The Company ventured into flexible packaging and laminates business at the existing plant at Kashipur in Uttarakhand. Flexible Packaging business has huge potential for growth in consumer preferences towards branded / packaged products growth of packaging end-sectors like food and beverages beauty care personal care and pharmaceuticals along with organized retail and strong overseas demand for packaged export products.
Rain Industries Ltd. (CMP – 166)
RAIN Group is one of the world’s largest producers of calcined petroleum coke (CPC) and coal tar pitch (CTP). The company operates in three key business verticals: Carbon, Advanced Materials and Cement. The company has 16 production facilities in seven countries across three continents and continues to grow through capacity expansions, mergers and acquisitions throughout the world across all business segments. RAIN Group aims at process improvement and the development of new, higher-margin products and technologies through research and development (R&D) initiatives. They emphasise performance improvement, sustainability and utilisation of alternative raw materials. The Group intends to maximise efficiencies and minimise costs by combining the purchasing, trading, plant operations, logistics management, finance and R&D functions within each business segment and by executing cost-reduction initiatives. Over the next few years, the demand for carbon products, such as CTP and CPC, is expected to grow significantly in India and the Middle East. To reinforce their market leadership as a provider of premium carbon products and innovative advanced materials, the Company has undertaken several capacity-expansion projects like the vertical-shaft kiln CPC plant in India and hydrogenated hydrocarbon resins (HHCR) facility in Germany.
Oil India Ltd. (CMP – 188)
Oil India Limited products and services include crude oil, natural gas, liquid petroleum natural gas (LPG) and pipeline transportation. The Company holds 1,56,890 square kilometer of acreage, including those in India and overseas, covering seventy eight blocks, of which it holds in India 13 New Exploration Licensing Policy (NELP) as Operator, 1 NELP as Joint Operator, 19 NELP as Non-Operator, 2 as JV, 8 Nominated Petroleum Exploration Licence (PELs), 1 Coal Bed Methane (CBM) Block and 21 Petroleum Mining Lease (PMLs). The Company holds 3 blocks as Operator, 8 as Non-Operator and 2 as JV partner overseas. The company also in the business activities of LPG, Pipeline, Crude Oil, Natural Gas. The Company owns and operates 1,157 km long fully automated crude oil trunk pipeline between Naharkatia Barauni which runs through the states of Assam, West Bengal and Bihar traversing hostile terrain, dense forests and cuts across 78 rivers. During the year, the Company has earned highest ever total revenue of 16,427.65 cr as against 10,561.45 cr in the previous year 2020-21. The Net profit margin of the Company for financial year 2021-22 was 23.66%.
Shriram Pistons & Rings Ltd. (CMP – 780)
Shriram Pistons & Rings Ltd. develops and manufactures pistons, pins, piston rings, and engine valves for original equipment manufacturers. Its products are used by passenger vehicle, two wheeler, commercial vehicle/engine, tractor, and industrial engine manufacturers in India, Europe, North America, Asia, Australia, and South Africa. Shriram Pistons & Rings Ltd. was formerly known as Shama Pistons & Rings Ltd. The company was incorporated in 1963 and is based in New Delhi, India with regional sales offices in Bengaluru, Pune, Kolkata, New Delhi, and Jallandhar, India. Shriram Pistons & Rings Ltd. operates as a subsidiary of Shriram Automotive Products Ltd. Company’s exports increased from Rs. 2,798 Million to Rs. 4,010 Million. Production of Medium & Heavy Duty Commercial Vehicles grew by 50% and in case of Light and Small Commercial Vehicles, the production increased by 21% and 20% respectively over last year. Production of Passenger Vehicles grew by 19% and three-wheelers grew by 23%.
National Aluminium Company Ltd. (NALCO) (CMP – 69)
Nalco is a public sector enterprise of the Government of India. It is Asia`s largest integrated aluminium complex, encompassing bauxite mining, alumina refining, aluminium smelting and casting, power generation, rail and port operations. Commissioned during 1985-87, Nalco has emerged to be a star performer in production, export of alumina and aluminium, and more significantly, in propelling a self-sustained growth. The Company has formed a JV Company with MIDHANI named Utkarsha Aluminium Dhatu Nigam Limited (UADNL) to make high end aluminium alloy to meet the requirement of defence and aerospace sector. To acquire strategic mineral assets in overseas location and making supply in India, NALCO has formed a JV Company named Khanij Bidesh India Limited (KABIL) with HCL and MECL.
GAIL India Ltd. (CMP – 85)
GAIL (India) Ltd is the country's natural gas corporation, encompassing all parts of the natural gas value chain, including exploration and production, processing, transportation, distribution, and marketing, as well as associated services. Today, the corporation has achieved new heights with its strategic diversification into petrochemicals, telecommunications, and liquid hydrocarbons, in addition to gas infrastructure. Through ownership and joint venture participation, they have also expanded their footprint in electricity, liquefied natural gas re-gasification, city gas distribution, and exploration and production. GAIL is focusing on Ethanol and Hydrogen to further minimise import expenses to the exchequer, carbon footprint, and emissions. GAIL believes in constant development, which is shown in our industry-leading operational efficiency. Continuous demand for natural gas, gas exploration on the East Coast, and increased production operations all send encouraging signals to the gas market. The Company is constantly expanding its global presence through its participation in projects/ventures along the natural gas value chain.
Nahar Spinning Mills Ltd. (CMP – 300)
The company makes and exports cotton hosiery garments woollen knitwear and textiles as well as cotton and synthetic yarn from several locations in Ludhiana. It has its own dyeing operation in Ludhiana, which is equipped with modern and sophisticated machinery. The company has established a new spinning factory at Simrai Mandideep, Madhya Pradesh, to produce cotton/synthetic yarn. The company includes 7 multi-location operations and a variety of goods, with over 60% geared towards export markets. The firm has built a cutting-edge factory to produce 12.5 million pieces of hosiery garments for customers such as GAP, Arrow, Old Navy, Banana Republic, Chaps, and others. The company's current spindlage capacity is 5.38 Lacs (approx.) spindles and 1080 Rotors. As a means of increasing the value of the Company's output, the Company has built a Mercersing cum dyeing factory with a capacity of 4.5 M.T. every day in Lalru Village, S.A.S. Nagar, Punjab The facility serves both the domestic hosiery garment industry and export markets.
Star Paper Mills Ltd (CMP – 200)
Star Paper Mills Limited is an Indian public limited company which manufactures a diverse range of industrial, packaging, and cultural papers for practically every market category. In addition to exporting products to neighboring nations, the firm distributes its paper under the 'Star Brand' brand and has a distribution network throughout the country. The company has plants in Saharanpur, Uttar Pradesh, and Kolkata, West Bengal. Its major activity is the manufacturing and delivery of paper and paper board.
Expected Profit Target
We expect minimum 18% - 25% upside move in the above stocks in short span of time, however due to global uncertainties there would be some chance of downfall risk. Hence, in case of sharp correction, averaging would be more suitable rather than exit.