Nifty, Sensex from Diwali to Diwali: Biggest falls, lifetime highs; now eyeing new peaks in Samvat 2079

India’s share markets have a trading, settlement holiday today on account of Diwali. However, Muhurat trading will happen for an hour in the evening on both BSE and NSE. Muhurat trading is the auspicious stock market trading on Diwali. It is an old ritual that has been retained for ages by the trading community. As Diwali marks the beginning of the New Year according to the Hindu Calendar, it is believed that muhurat trading on this day brings wealth and prosperity throughout the year. This year, the trading session will be held between 6:15 PM and 7:15 PM, and the pre-open session will begin at 6:00 PM, both the bourses informed in separate circulars.

Note that all trades executed in this Diwali Muhurat trading session shall result in settlement obligations. Muhurat trading has turned out to be profitable for traders in the past few years, though low trading volumes have usually been observed, and fewer stocks move during the one-hour trading duration. In fact, BSE Sensex closed higher in 11 of the last 15 such special sessions. On the previous Diwali, the index had advanced 295.7 points or 0.49%. Here’s a look at how the benchmark indices have performed Diwali to Diwali in the last three years.

Indices rally from Diwali to Diwali

After the stock market crashes in March 2020 amid covid outbreak, both indices staged a smart recovery. Nifty rallied 9% from Diwali 2019 (27 October) to Diwali 2020 (14 November), while Sensex jumped 11%. From Diwali 2020 to Diwali 2021 (4 November), the indices rallied 40% and 37% respectively. However, from last Diwali to 19 October 2022, both Nifty and Sensex have fallen around 2%. Although both benchmark indices have corrected due to current macroeconomic conditions compared to their lifetime highs hit in Samvat 2078, the long-term growth has been strong for the Indian markets.

Nifty, Sensex lifetime highs and biggest falls

The BSE benchmark index Sensex registered a lifetime high at 62,245.43 on October 19, 2021. Its broader counterpart NSE Nifty too hit a lifetime high of 18,604 on 19 October 2021. The top five biggest market crashes, in terms of absolute points, happened in 2020, and are attributable to the news of the outbreak of Coronavirus. On March 23, 2020, Sensex witnessed its biggest intraday decline when it plummeted 4,035.13 points or a massive 12.71%. Nifty also saw the biggest single-day fall in history that day as it fell by 1,135.20 points or 13.0%.

Also Read: F&O expiry: Nifty support at 17400, resistance at 17800; look for opportunities only in momentum stocks

Nifty roller coaster journey so far in 2022

Sensex has soared by a massive 15,470 points or 21% since Diwali 2020 (till 19 October 2022). Nifty 50 has skyrocketed by a massive 4,732 points or 37%. The year 2022 has been a roller coaster ride for the equity markets. From the all-time high of 18,604, hit on 19 October last year, Nifty fell around 18% to around 15,300 levels earlier this year. From that low, the index recovered to reclaim the 18,100 level before witnessing another correction which pulled it down to around 16,800. The index is now trading around 17,600 and is expected to soon surpass its all-time high to move towards 19,000 level. According to analysts, both Nifty and Sensex will touch new highs in Samvat 2079. “If Nifty crosses the resistance of 18500, and Sensex tops 61,500 then the Nifty would move towards 19,500-20,000 and Sensex may head to 64,500-66,000,” said analysts at Kotak Securities.