What are Diwali Picks?
Every year during the Diwali season, stock brokers and brokerage firms release a list of stock recommendations. These stock recommendations are for investors to trade and invest in the new year and during the auspicious time of the muhurat window in the Indian Stock Market. Brokers suggest the stocks based on the company’s performance by the end of the past Samvat (year based on the Hindu Vikram Calendar), market situations, and industry development. Diwali picks intend to inform investors about the potentially fair prospects to produce wealth in the coming year.
What is the Importance of Diwali picks?
Diwali marks the end of a Samvat and the beginning of the new year for people in business and stock brokers in India. This is the day when new accounts are opened for the coming fiscal year. Additionally, Chopda Pujan happens during this time to revere the goddess of wealth and prosperity, Maa Lakshmi.
On the day of Diwali, the Indian stock market is closed for the entire day. However, it opens for a pre-decided time of just an hour, called the muhurat window. muhurat, in the Hindu religion, is an auspicious time to start something. Investing and trading stocks during the muhurat window of the share market has the same significance as purchasing gold or ornaments during an auspicious time. It’s symbolic of a good omen and the welcoming of the new year on a note of prosperity.
Before the day of Diwali, brokers announce Diwali picks as a gesture of good wishes for the new year. They choose these stocks based on their bullish trends, stock market outlook, and demand. Diwali picks intend to motivate investors to begin the year by investing in or trading equities that show solid potential to bring prosperity throughout the year.
Who Can Participate with Diwali picks?
Diwali picks allow an opportunity for both new and settled traders in the industry. They are considered a good investment option during and after the muhurat trading window. Due to the festive spirit during the muhurat window, the market is often bullish to promote optimism for prosperity and a better economy. It is considered a good investment time if you’ve never participated in the stock market.
Since Diwali picks are backed with research and expertise, they allow fresh incomers to choose a company with high potential. They also consolidate the research of settled investors and traders into equities of high-quality companies with a long-term investment outlook.
However, traders must remain aware that Brokers or brokerage firms do not convey guarantees or promises in the share market with the Diwali picks. They are simply suggestions made based on their performance and expected potential.
How to Participate with Diwali Picks?
The muhurat window for Diwali 2022 is on 24th October, with the normal market opening from 18:15 to 19:15. While traders and investors can participate in the muhurat window with the Diwali picks, they can invest or trade the recommended company stocks throughout the year.
If traders or investors consider participating in the muhurat trading sessions, keep in mind that the markets might be unpredictable during the day with no clear trend. Many rumors about an excellent or terrible stock can circulate due to excitement and enthusiasm. Before investing in stocks for the long run, investors should focus on the company’s fundamentals.
Finally, remember that investing in Diwali picks does not guarantee a profit. Even if the stock does well during the festival, the stock’s future potential is determined by the company’s performance and macroeconomic circumstances
Our Diwali Picks 2022
With the beginning of Samvat 2079, Marwadi Shares and Finance Limited has released a list of five stocks as Diwali picks for 2022. Our list consists of the following companies:
- Metro Brands Ltd. with a predicted upside of 33%
- Home First Finance Ltd. with a predicted upside of 32%
- Indraprastha Gas Ltd. with a predicted upside of 26%
- Balkrishna Industries Ltd. with a predicted upside of 35%
- Whirlpool of India Ltd. with a predicted upside of 31%
The market view for the coming year is positive. We predict India’s future journey based on high demand momentum from the festive season, robust comeback in consumer space in several sectors post-Covid, and corporate profits growth projections.