Muhurat Trading: Choice Broking prefers this PSU Bank stock as its top pick | Stock Market News

Muhurat Trading 2024: Indian stock exchanges are closed today, November 1, in observance of Diwali, the festival of lights. However, a special one-hour Muhurat Trading session will be held this evening to celebrate the start of the new Hindu calendar year, Samvat 2081.

Scheduled from 6:00 p.m. to 7:00 p.m. IST, this symbolic trading session is seen as a gesture for good fortune and prosperity. Investors, traders, and institutions participate in ceremonial trades during this period, with shares bought during this session traditionally considered auspicious, as many believe it brings blessings for wealth and success in the coming year.

Mandar Bhojane, Equity Research Analyst, Choice Broking has come out with a Muhurat Trading Pick – State Bank of India (SBIN). Let’s look at its technical.

Current Price: ₹820

Technical Outlook: Potential Bullish Opportunity

State Bank of India (SBIN) is showcasing a compelling setup on the daily chart as it forms a symmetrical triangle pattern supported by significant volume, suggesting a potential bullish reversal. The stock is consolidating above a rising trend line, acting as a critical support level, and is currently supported around the 200-day EMA—both technical factors that reinforce the probability of an upward movement. With immediate resistance observed at ₹840, a breakout could unlock further upside potential.

Key Levels to Watch

Upside Targets: ₹880 and ₹950

Immediate Resistance: ₹840

Downside Support: ₹770 and ₹760

The Relative Strength Index (RSI) is positioned at 48, indicating increasing buying momentum with a positive trajectory. This mid-level RSI suggests SBIN is gaining strength without entering overbought conditions, aligning well with the broader market sentiment.

Investment Strategy

According to Bhojane, SBIN offers a favorable Muhurat trading entry opportunity, especially on dips near ₹800, aiming for targets of ₹880 and ₹950 in the near term. Investors are advised to utilize sound risk management strategies to safeguard against volatility and capitalize on potential upside, he suggested.

This combination of technical indicators and solid support structures positions SBIN as a promising choice for Muhurat trading, added the expert.

Stock Price Trend

The PSU Bank stock has jumped 45 percent in the last 1 year and around 30 percent in 2024 YTD. It advanced over 4 percent in October after 2 straight months of losses. It shed 3.4 percent in September and 6.5 percent in August.

The stock hit its record high of ₹912.10 in June this year but is currently 10 percent away from peak. Meanwhile, it has surged almost 48 percent from its 52-week low of ₹555.25, recorded in November 2023.

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