The ceremonial Muhurat trading session that marks the beginning of the Hindu calendar year is set to take place this weekend. According to Geojit Financial Services, this session could usher in some positivity in the stock markets going forward.
While the broader markets have seen declines over the last few months, Geojit Financial believes historical trends indicate the Muhurat session often coincides with a reversal or at least temporary stabilization. Data shows the Nifty index has ended higher after 8 of the last 10 Muhurat sessions.
Additionally, in the majority of years over the past decade, the two months following Muhurat trading have seen positive returns. Foreign institutional investors have also tended to be net buyers in November after being sellers in October. This suggests investor sentiment may improve in the coming weeks.
However, Geojit Financial warns that caution is still needed given the current uncertain macroeconomic environment. Successful stock picking will be important to generate returns. But overall, the firm feels the upcoming Muhurat session signals a chance for the market to regain some lost ground or at least consolidation in the near term. Traders and investors will be closely watching tomorrow’s special one hour session for clues on how the new year may unfold.
