For Diwali Muhurat trading, focus on these 3 high-delivery stocks

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Subscribe to enjoy similar stories. As Diwali, one of India's most celebrated festivals, approaches, a palpable excitement fills the air. It is a celebration oflights and new beginnings and a period when many individuals invest in the stock markets.

Indians believe in auspicious timing—"muhurat", which drives investors to purchase stock during this time. This often leads to a herd mentality reflected in the Gujarati phrase "Su leva nu muhurat ma?" which translates to "Which stock to buy during Diwali Muhurat?" Rather than a herd mentality, one can prefer a methodical approach to identifying potential investment opportunities using the concept of delivery volumes. Understanding the delivery volumes of stocks, particularly within specific sectors, can provide valuable insights into investor behaviour and market trends.

Tools like the ‘sector volume scanner’ from Definedge, can help analyse various sectors and uncover promising stocks for the festive season. Delivery volumes represent the quantity of shares bought and sold that are settled on the stock exchange. A high delivery volume indicates a strong conviction among investors about a stock, suggesting accumulation rather than mere speculative trading.

Analysts often focus on delivery volumes at the stock level, but examining sector-wide delivery volumes can yield even greater insights. With the limited number of sectoral indices provided by the National Stock Exchange (NSE), Definedge has innovated by creating 64 equal weighted sectoral indices. This allows for a more nuanced analysis of sector performance.