Muhurat trading is the auspicious time of the year when traders and investors look forward to trading. The victory of good over evil is celebrated as Diwali in India. That is also the reason goddesses such as Laxmi and Kali were worshipped across India with lights, firecrackers enlightened lamps candles, and sweets on that specific day. Diwali also marks a new account year for the persons who are associated with any kind of business. That is why NSE or National Stock Exchange opens the stock market for trading. A special 1-hour time period from 6.15 pm to 7.15 pm every year. This period of time was marked by the muhurat trading. Let us discuss the Muhurat Trading Picks 2022 in this post.
FAQ about Muhurat Trading
During Diwali, the NSE and BSE set up a trading session window. The trading session begins to mark the beginning of the Hindu new year. Samvat is the name of the new year.
During Muhurat trading, stock movement is likewise minimal. As a result, there is no significant index change during Muhurat trading. There is some intraday trade, but it is not big. Depending on the business environment, the index may close higher or lower.
Yes, equity commodity trading can be done during this time period. Not only that Equity F&O, Currency F&O all kinds of share-related trading can be done during this time period.
The upcoming muhurat will be on 24th October 2022. It will start from 6.15 pm to 7.15 pm.
What is Muhurat Trading?
The Muhurat is a term that refers to a specific time. Diwali also denotes the Hindu new year in some parts of India. So, muhurat trading suggests a fresh start during the Diwali festival. During Diwali, we begin a new business year, as the name suggests. Diwali marks the beginning of a new business year for the Indian business community. That is why the Indian trading authority provides a special time period for traders and investors for trading purposes. The notion to start trading for a limited hour comes from the NSE, India’s major stock exchange. During the evening, that is why muhurat trading starts at that time. So that everyone wholeheartedly celebrates this occasion.
The brokers of Dalal Street also say that the person who buys stocks during the time of muhurat trading should sell those stocks rather they should pass them on those stocks to the next generation. That is how prosperity comes generation by generation.
Market Time Table for this Auspicious Day
- Pre-opening of market = 6.00 pm to 6.08 pm
- Block Deal timings = 5.45 pm to 6.00 pm
- Normal market timing = 6.15 pm to 7.15 pm
- Call Auction Illiquid session = 6.20 pm to 7.05 pm
- Closing time =7.25 pm to 7.35 pm
Top Muhurat Trading Picks 2022
During this special period of time, investors keenly wait for the most potential stocks to invest in. On the other hand, the traders also wait to generate profit as much as possible. As most of the traders eagerly wait during that time to trade in that one-hour time period some down trading stocks started going upwards. That is why the market becomes very volatile during that time. So it is very important to invest wisely to gain profit and profit only.
In the following, I have presented the best broker house with their muhurat trading picks for 2022. So that it would help you to generate profit. I got all the ideas from the MoneyControl.com website. The broker house and their recommendations are,
1) Muhurat Trading Picks 2022 by ICICI Securities
Axis Bank:
Target Price (TP): Rs 960 per share, as recommended by Kotak Securities; Rs 970 per share, as recommended by ICICI Direct. Potential increase – 18%
Experts predict that advances would expand at a CAGR of 16.3 per cent in FY22–24, which is higher than the lender’s declared growth rate of roughly 13 per cent over the previous five years. According to experts, the acquisition of Citi’s consumer businesses should result in robust business growth, improved operational efficiency, and synergy benefits that should have a positive impact on the earnings trajectory and price performance. Additionally, experts predict that incremental provisions will be on the lower side, resulting in lower credit costs, which will increase the bank’s earnings.
According to a report from ICICI Direct Research, “We believe Axis Bank will achieve a return on assets (RoA) of 1.5 per cent and a return on equity (RoE) of 15 per cent over FY22-24.” It projects a buying range of Rs 780–815 for the stock over the course of the next 12 months with a target price of Rs 970.
Brokerage Since the bank is expected to converge with its other frontline peers on a number of operating indicators, Kotak Securities is also bullish on the stock. This also gives confidence about cost structure, liability and asset soundness, and net interest margins (NIMs). The company’s target price from Kotak is Rs 960.
City Union Bank
TP of Rs. 215 per share is advised by ICICI Direct, and TP of Rs. 230 per share is advised by IDBI Capital Markets & Securities Ltd. A 20% potential increase.
An established private sector bank, City Union Bank focuses mostly on agri-loans and micro, small, and medium-sized companies (MSMEs), which account for about 61 per cent of total advances. Nearly all of its technological advancements are secure in nature. The bank recorded a 10 per cent CAGR in advances over the previous five years, and analysts anticipate a 13 per cent CAGR in growth for FY22–24.
According to research by IDBI Capital, “Historically, the bank’s loan book growth has not only exceeded that of the entire banking industry but is also in the top quartile among its peers, posting loan growth at 16 per cent CAGR (FY15-19)”.
Recovery in its stressed asset pool and increased credit offtake are anticipated benefits of the revival of MSMEs. According to ICICI Direct Research analysts, “steady margins at 4% and good business growth will improve operational performance and return ratios.” “We anticipate City Union Bank to produce RoA of 1.5% and RoE of 13% in FY22-24,” the statement reads. Over the course of a year, the brokerage has set a target price of Rs. 215 and a purchasing range of Rs. 170-185.
Investors might strive for a target price of Rs 230 during the coming year, per IDBI Capital projections.
2) Muhurat Trading Picks 2022 by JM Financial Services
Computer Age Management Services (CAMS)
JM Financial Services recommends TP at Rs 3,300 per share and TP at Rs 3,020 per share for GEPL Securities. The potential increase is 27%.
CAMS holds a market share of 70% of India’s RTA market and is the leading registration and transfer agency (RTA) for mutual funds (MFs). India currently only has a 16 per cent MF penetration rate, which is much lower than the 63 per cent global average. Analysts at GEPL Capital stated that “robust domestic inflows signal increased penetration and CAMS to be the biggest beneficiary in the financialization of savings.”
The business also began offering portfolio management services (PMS) and solutions for alternative investment funds (AIFs), and as of April 2021, it has a monopoly on a 50% portion of the AIF/PMS industry.
According to GEPL Capital research, “We believe the company’s dominating position in the expanding market to bear fruits for CAMS.” CAMS is trading at a projected PER (price-earnings ratio) (x) of 28.6, and we set a target price of Rs 3,020 and value it at 35(x) FY25 earnings to the “buy” level. Revenue and PAT (profit after tax) CAGR are each at 13 and 14 per cent.
According to analysts at JM Financial Services, the company’s insurance repository business is projected to experience considerable growth as a result of the recent legislative drive to require the issue of e-policies. With a target price of Rs 3,300, they advise investors to “buy” the stock.
ITC
JM Financial Services suggests TP at Rs. 382 per share and Axis Securities at Rs. 380 per share. The potential increase is 14%.
Starting in the early 2000s, ITC Limited built a sizable fast-moving consumer goods or FMCG company from scratch. The segment has been built up to Rs 12,900 crore in FY20 from a base of zero (revenue). Profits before interest, taxes, depreciation, and amortization, or EBITDA, for the FMCG industry, are anticipated to exceed Rs 15,800 crore and total Rs 1,500 crore.
Notably, this company was founded at a price-to-sales ratio of under two and targets market prospects that are more than three times larger than those of Nestle India and even HUL (Hindustan Unilever Ltd).
The hospitality industry is anticipated to experience robust revenue growth and margin recovery as leisure and business travel raise occupancy levels nationwide. Additionally, research from Axis Securities stated that “a resurgence in the end-user sectors and exports is projected to enhance paperboard sales moving forward.”
The stock is presently trading at 18 times EPS for the FY25, and in comparison to its competitors, it has a very large margin of safety thanks to its 4-5 per cent dividend yield. In addition, ITC is a stronger investment in the overall FMCG pack where valuations are high, according to Axis Securities, “because of the rebound in the tobacco sector and rise in agro, hotels, and paperboard in the near future.” The target price set by JM Financial is Rs 382, while the brokerage is looking at Rs 380 for the stock over the next 12 months.
Mahindra & Mahindra
As per Kotak Securities’ advice: TP: Rs. 1500 per share. A 20% potential increase.
Given its recent successful launches, the company’s automotive division is likely to deliver a solid performance in the upcoming quarters. Additionally, the corporation is expanding its line-up of electric vehicles (EVs). Given regular monsoon conditions and healthy reservoir levels, analysts anticipate a mid-single-digit increase in the tractor segment volumes. Also, its overseas agricultural equipment companies continue to produce consistent results despite a difficult macroeconomic climate.
Given the Mahindra company’s reasonable growth prospects and favourable valuations, Kotak Securities has given the stock a “buy” rating and set the SoTP (sum-of-the-parts)-based fair value at Rs. 1,500 per share.
Titan Industries
JM Financial Services advises TP: 3,100 rupees per share. The potential increase is 17%.
JM Financial Services claims that the company’s earnings are increasing as a consequence of expansion, improved product mix, and resulting cost leverage. With jewellery growth guidance of 2.5 times over five years, i.e., 20 per cent CAGR during FY22-27E, and near-term margin expected at 12-13 per cent, the management reiterated its bullish overall outlook in light of the strength across segments. As growth drivers, other industry sectors including watches, wearables, and eyewear are also emerging.
In the medium to long term, the Titan management sees the potential to nearly treble the shop presence of its Tanishq brand from the present 237 cities to over 500 cities. It has predicted an expansion of 40–45 stores each year for Tanishq. It is also anticipating significant store openings for the brands Caratlane, Mia, and Zoya.
The Titan Industry’s emphasis on internal brands, domestic sourcing, and channel mix is enhancing the forecast for margins. JM Financial Research analysts have established a target price of Rs 3,100 per share.
Jubilant FoodWorks
IDBI Capital Markets & Securities Ltd.’s recommendation; target price of Rs. 767 per share. The potential increase is 28%.
The largest food service organization in India, Jubilant Foodworks, has exclusive master franchise rights with Domino’s Pizza Inc. It currently has a sizable network of 1,625 Domino outlets spread throughout 349 Indian cities, and its medium-term goal is to have 3,000 Domino’s restaurants there. Additionally, it is going after 250–300 Popeyes restaurants nationwide.
According to IDBI Capital, the company’s sales will increase at a two-year CAGR of 26% from FY22 to FY24. Also, its earnings per share will increase at a two-year CAGR of 42 per cent. With a target price of Rs 767 per share, it anticipates an increase in ROE to 29% in FY24 (from 25% in FY22).
Laurus Labs
ICICI Direct advises TP at Rs. 675 per share. The potential increase is 32%.
Laurus Labs works in the fields of biotechnology, bespoke synthesis, and generic APIs & FDFs (formulations). Ant-retroviral, cancer, and other APIs are the main areas of interest for this company.
ICICI Direct analysts believe that the company is now in good shape to meet the rapidly increasing global demand for new chemical entity (NCE) drug substances and drug products with ongoing supplies for seven commercial products in the custom synthesis/contract research and manufacturing services/ (or CRAMs) business.
Due to product introductions in the anti-diabetic (FY23) and cardiovascular (FY24) portfolios in the US and Europe, formulations will continue to do well. According to ICICI Direct analysts, “Laurus has several planned portfolio capacity increases based on complexity and scale toward strengthening and diversifying company through an enhanced focus on non-ARV APIs and formulations and high growth CRAMS markets.” Boosting reactor volume, stabilizing the API order book, calibrating the focus on CRAMs, expanding the biologic CDMO (contract development and manufacturing organization), launching new products, and increasing capacity are some critical levers.
With a target price of Rs. 675 or 25 times FY24 EPS of Rs. 27, the brokerage advises a “buy.”
Conclusion
I hope my readers have a clear view of the most profitable stocks or muhurat trading picks in 2022 to invest in. This will also make this muhurat trading the most profitable possible.
