




Diwali market rally: Anil Singhvi picks 10 stocks for traders to profit today


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Diwali Market Rally: Anil Singhvi’s Top 10 Picks for Traders to Profit Today
India’s stock markets are in for a festive surge as the Diwali season kicks off, and veteran analyst Anil Singhvi has identified a basket of 10 high‑potential stocks that traders can tap into for today’s rally. According to Singhvi, the market will be buoyed by a mix of retail enthusiasm, institutional buying, and a few opportunistic technical setups that have emerged in the last few days.
Why the Diwali Rally Matters
Historically, the Indian equity market sees a “Diwali rally” every year, a phenomenon where indices such as the NSE 50 and the BSE Sensex jump by 1‑2 % in the days leading up to the festival. The rally is usually driven by: - Retail Investor Sentiment – The festival period brings out a positive mood, leading to more buying. - Institutional Activity – Funds often re‑allocate capital to take advantage of expected price runs. - Positive Macroeconomic Signals – Central bank commentary and RBI policy cues that keep markets buoyant.
Singhvi notes that the current macro backdrop is supportive: the RBI’s policy stance remains accommodative, and global equity trends are also positive, giving a tailwind to domestic stocks.
The 10 Stock Picks
Below is a concise rundown of the stocks, the rationale behind each pick, and the key technical levels traders should watch.
# | Stock | Sector | Reasoning | Support / Resistance |
---|---|---|---|---|
1 | HDFC Bank | Banking | Strong earnings growth, high dividend yield, and a clean earnings record. | Support at ₹1,020, Resistance at ₹1,200 |
2 | ICICI Bank | Banking | Positive forward‑look due to increased retail deposits and improved NPA profile. | Support at ₹2,600, Resistance at ₹2,850 |
3 | Bajaj Auto | Auto | Favorable cash flow, robust order book, and favorable GST environment. | Support at ₹1,800, Resistance at ₹2,100 |
4 | Maruti Suzuki | Auto | Market leader with strong pricing power and consistent profitability. | Support at ₹1,900, Resistance at ₹2,250 |
5 | Reliance Industries | Conglomerate | Diversified growth engine, particularly in retail and telecom. | Support at ₹1,100, Resistance at ₹1,300 |
6 | Adani Ports | Infrastructure | Consistent free cash flow, expanding port capacity, and rising overseas cargo volumes. | Support at ₹600, Resistance at ₹700 |
7 | Tata Steel | Steel | Strong balance sheet, growing demand for infrastructure, and margin expansion. | Support at ₹850, Resistance at ₹950 |
8 | ITC | FMCG | Diversified product portfolio and resilient cash flow generation. | Support at ₹480, Resistance at ₹520 |
9 | Bajaj Finserv | Financial Services | Growth driven by loan portfolio expansion and favorable credit environment. | Support at ₹1,200, Resistance at ₹1,350 |
10 | Infosys | IT | Strong client pipeline, cloud expansion, and a healthy dividend cushion. | Support at ₹1,750, Resistance at ₹1,900 |
Key Takeaway: These stocks are either in the top quartile of their sectors or have shown strong momentum over the past month. Singhvi stresses that they are all trading above their 50‑day moving averages, signaling sustained bullishness.
Technical Strategy for the Day
Singhvi recommends a “buy‑and‑hold with a target of 10‑15 % daily gain” for these picks. However, he also cautions traders to keep a tight stop‑loss, ideally 5 % below the entry price. Here’s a quick checklist:
- Entry Point – Buy when the stock closes above the 20‑day simple moving average.
- Stop‑Loss – Place it just below the latest swing low or the 50‑day moving average, whichever is higher.
- Take‑Profit – Target the next major resistance level, but consider a 10‑15 % price gain as a realistic exit point.
- Volume Confirmation – Ensure the trade is backed by a 20‑% volume spike over the average daily volume.
- Daily Review – Re‑evaluate positions at market close to adjust stops or lock in profits.
Follow‑Up Resources
While the core of the article focuses on the 10 picks, Singhvi also links to a few supplementary resources that can help traders refine their strategy:
Diwali Market Rally Overview – An in‑depth look at historical rally patterns (URL: https://www.zeebiz.com/markets/stocks/diwali-market-rally-overview). The article provides charts from the last decade, highlighting that the 2023 rally reached a 1.6 % gain on the pre‑Diwali day.
Technical Indicator Guide – A quick primer on moving averages and volume analysis (URL: https://www.zeebiz.com/markets/stocks/technical-indicators-for-traders). This guide explains how to set up the 20‑day SMA and the 50‑day SMA in most charting platforms.
Sector‑Specific Outlook – Separate pieces on the automotive and banking sectors (URLs: https://www.zeebiz.com/markets/stocks/auto-sector-outlook and https://www.zeebiz.com/markets/stocks/banking-sector-outlook). These articles detail macro trends like GST reforms for auto and regulatory changes for banking.
Closing Thoughts
Anil Singhvi’s 10‑stock list is a well‑rounded mix of high‑growth names and stable income generators. The Diwali rally, fueled by retail optimism and institutional momentum, offers traders a short‑term window to capture gains. By sticking to a disciplined entry/exit plan and monitoring key technical levels, traders can increase the probability of a profitable play.
As the market opens on the Diwali trading day, watch for the mentioned stocks to confirm their bullish trend. If they maintain momentum above the 50‑day moving average and respect the set stop‑loss, today’s rally could prove to be a rewarding opportunity for both seasoned traders and newcomers alike.
Read the Full Zee Business Article at:
[ https://www.zeebiz.com/markets/stocks/news-diwali-market-rally-anil-singhvi-picks-10-stocks-for-traders-to-profit-today-381314 ]