Muhurat Trading: Indian markets may see gap-up opening; Banks, FMCG may see major traction – know what analysts say

Indian markets are likely to witness a gap-up opening during a one-hour special Muhurat Trading session between 6:15 and 07:15 PM on Monday, October 24, 2022. Muhurat Trading is a common ritual followed by traders in India, considered auspicious on the day of Diwali.

According to the market analyst Sandeep Jain, a Director at TradeSwift, the domestic market may show a gap-up opening, and it will react to major results such as Reliance Industries, Kotak Bank, ICICI Bank, and Hindustan Unilever among others.

Similarly, Arun Kejriwal of Kejriwal Research and Investment Services expects a gap-up open in the Muhurat session, and typical of such sessions, low volumes would be the order of the day.

Jain stated that the Nifty may have support of 16800-17000 at the downside and 17600 level as resistance at the upside. “It is imminent that Nifty closes above 17600 levels on Muhurat Trading for better technical support ahead.”

Even Kejriwal said, “On the upside, we have resistance around the 17,850-17,900 on NIFTY and 60,125-60,300 on BSE SENSEX. Assuming this does get crossed in the three days plus one hour during the week ahead, the resistance is at 18,100 and 61,000 levels.”

In the last week, Sensex gained 1,387.18 points or 2.39 per cent to close at 59,307.15 points while Nifty gained 390.60 points or 2.27 per cent to close at 17,576.30 points.

The broader markets such as BSE100, BSE200, and BSE500 gain 2.09, 2, and 1.82 per cent respectively and BSE Midcap was up 0.39 per cent while BSE Smallcap was up 0.15 per cent in the previous week.

Jain also added the sectors such as Banks and FMCG shall be most sought on the back of positive outlook as well as good results by the private lender and FMCG heavyweights like Axis Bank, Kotak Bank, and ICICI Bank along with HUL and ITC.

India seems better placed than many of its peers. While we will continue to be guided by overseas cues, our outperformance will continue, the market expert Kejriwal said in his comment.