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Given favourable seasonality and the strong bullish momentum prevailing in the market, the benchmark Nifty 50 has a good chance of extending its winning streak into the Muhurat trading session, said Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, in an interview with Moneycontrol.

However, he believes the index is approaching overbought territory, increasing the possibility of near-term consolidation. Therefore, investors would be better off booking partial profits at current levels rather than chasing the ongoing rally, he advised.

Shah recommends buying Axis Bank, Bajaj Finance and TVS Motor Company as his top picks for Muhurat session.

How do you view the upcoming Muhurat trading session, especially given that the bulls have already celebrated Diwali in style, with the Nifty 50 rallying 8.58 percent over the last seven consecutive sessions?

Nifty has ended positive in 8 of the last 10 Muhurat trading sessions, delivering an average gain of 0.31 percent. Given the favourable seasonality and the strong bullish momentum currently prevailing in the market, the benchmark index has a good chance of extending its winning streak into the Muhurat session.

The recent rally has been supported by strong buying in heavyweight stocks, a meaningful turnaround in FII flows, easing crude oil prices and renewed interest in Indian equities amid global AI-led selling.

FIIs have pumped in Rs 49,559 crore over the last six sessions, while their index futures long-short ratio has climbed to 24.61 percent, reflecting improving sentiment. Meanwhile, Brent crude has corrected nearly 15 percent from recent swing highs, easing a key macroeconomic concern for India.

With heavyweight participation remaining strong and multiple macroeconomic headwinds turning supportive, the overall setup remains constructive heading into Muhurat trading.

What would be your trading strategy for the Nifty 50 at current levels, particularly after such a sharp and sustained rally? Would you recommend booking profits, holding existing positions or waiting for a fresh buying opportunity?

Nifty surged over 8 percent during the week, recording its strongest weekly gain since February 2021 and closing above 25,000 for the first time since February 2026. However, the rally has been largely driven by heavyweight stocks, with midcap and smallcap indices relatively underperforming.

With the daily RSI at 78.50, the index is approaching overbought territory, raising the possibility of near-term consolidation. Hence, some profit booking would be prudent at current levels rather than chasing the rally.

Technically, 24,750–24,800 is an important support zone. As long as Nifty sustains above 24,750, the bullish outlook remains intact. We recommend booking partial profits while holding the remaining positions with a trailing stop-loss to participate in the next leg of the rally.

What are your top three technical stock picks for the Muhurat Trading session?

Axis Bank

Axis Bank has registered a horizontal trendline breakout on the daily chart, supported by strong volumes. The RSI continues to trend higher, indicating strengthening bullish momentum. The improving price structure and volume confirmation reinforce the positive outlook. Hence, the accumulation is recommended in the Rs 1,315–1,325 zone, with a stop-loss at Rs 1,285. On the upside, the stock is likely to test Rs 1,410 in the short term.

Bajaj Finance

Bajaj Finance has registered a downward-sloping trendline breakout on the daily chart, followed by a strong follow-through move. The RSI has surged above the 70 mark, indicating robust bullish momentum. Rising histogram bars on the MACD further reinforce the positive bias. Hence, the accumulation is recommended in the Rs 1,080–1,095 zone, with a stop-loss at Rs 1,060. On the upside, the stock is likely to test Rs 1,155 in the short term.

TVS Motor Company

TVS Motor is on the verge of registering a horizontal trendline breakout on the daily chart. The stock has closed above the upper Bollinger Band for the last two sessions, a phenomenon often observed during the early stages of strong trends.

The MACD line has also moved above the zero line and continues to slope upwards, reinforcing the bullish bias. Hence, the accumulation is recommended in the Rs 4,480–4,500 zone, with a stop-loss at Rs 4,365. On the upside, the stock is likely to test Rs 4,800 in the short term.

Given the strong bullish momentum over the past three sessions, do you expect Kalyan Jewellers to move towards its July high next week?

Kalyan Jewellers has registered a downward-sloping trendline breakout on the daily chart, signalling a potential shift in the short-term trend. The RSI has also broken above its falling trendline, indicating renewed bullish momentum. Furthermore, the DI lines have witnessed a bullish crossover, suggesting that buyers are gaining control over sellers.

A sustained move above current levels could pave the way for a gradual recovery towards its July highs, although the move can take time to materialise.

Are the technical charts signalling a potential breakout in Mahindra and Mahindra, with the stock likely to surpass the Rs 3,500 mark next week?

M&M was consolidating within a narrow range before witnessing a decisive breakout, followed by a sharp upward move. The breakout was accompanied by a significant rise in volumes, lending strength to the bullish setup. The stock has also closed above the upper Bollinger Band for two consecutive sessions, a phenomenon often observed during the early stages of a strong uptrend.

The RSI continues to trend higher, reflecting strengthening bullish momentum. While the Rs 3,500 mark is still nearly 6.5 percent away, sustained buying interest could gradually drive the stock towards this level in the near term.

Do you expect the record-setting rally in MCX to continue going ahead?

Multi Commodity Exchange of India has registered a horizontal trendline breakout on the daily chart, indicating a potential continuation of the upward trend. The ADX has started rising gradually, signalling a buildup in trend strength. The stock has also reclaimed its key short- and long-term moving averages, reflecting an improvement in its overall technical structure.

Furthermore, the MACD line has crossed above the zero line, reinforcing the bullish bias. The improving price structure and favourable indicator placement suggest that the stock is well-positioned to extend its upward move in the near term.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.