Muhurat Trading 2026: Nifty may see big gap-up opening, but there's a catch; expert picks 3 stocks

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The Nifty 50 could witness a sharp gap-up opening during the Muhurat trading session on Sunday, November 8, as bullish sentiment continues to drive Indian equities, according to Ashish Kyal, Founder and CEO of Waves Strategy Advisors.

However, Kyal cautioned that profit booking could follow the initial surge, potentially keeping the index in the 25,050–25,150 range during the special trading session.

"The market is euphoric, and we can expect a much bigger gap-up opening," Kyal told Moneycontrol in an interview. He expects the Nifty to move towards 25,100 but warned that thin trading volumes and overbought technical indicators could limit further gains.

For Muhurat trading, Kyal recommends three stocks: Axis Bank, Bank of Maharashtra and HCL Technologies.

He sees Axis Bank rising to Rs 1,480, supported by a bullish Elliott Wave pattern, while Bank of Maharashtra could climb to Rs 98 following a breakout from its consolidation range. HCL Technologies, meanwhile, could advance to Rs 1,650 as technology stocks regain momentum.

Despite his positive outlook, Kyal advised investors to avoid chasing stocks after the recent rally and instead use market corrections to build long-term positions.

He also expects the Nifty to consolidate in the near term after its sharp recovery from the October lows, although a move past its previous record high of 26,300 remains possible.

Edited excerpts from the interview:

What is your outlook for the Muhurat trading session? Which direction do you expect the benchmark indices to take?

Historically, the Nifty has tended to open with a gap-up during Muhurat trading, move higher initially and then trade within a narrow range until the close.

We expect a similar pattern this time, with the index potentially moving towards 25,100.

However, given the thin trading volumes and euphoric market sentiment, a much larger gap-up opening is possible. Profit booking could follow, keeping the Nifty in the 25,050–25,150 range.

What trading strategy would you recommend for Muhurat trading, considering the relatively low volumes?

Muhurat trading is best used to accumulate stocks from a long-term perspective, particularly those that have not become overbought following the sharp rally over the past week.

Traders should exercise caution while dealing in the Nifty and Bank Nifty, as short-term technical indicators are showing overbought conditions.

For intraday traders, scalping opportunities may emerge if the Nifty opens near 25,030, with a potential move towards 25,100–25,150. The key support level is 24,930.

Which three stocks would you recommend for Muhurat trading, and what are your target prices?

Axis Bank: The Bank Nifty is now catching up with the Nifty, and Axis Bank is showing strength after rebounding from the lower end of its weekly channel pattern.

The stock has formed a strong bullish candle on the daily chart. Based on the Elliott Wave pattern, we expect it to move towards Rs 1,480 in its third wave, with support near Rs 1,270.

Buying on dips would offer a better risk-reward opportunity.

Bank of Maharashtra: The stock, currently trading near Rs 86.90, has broken out of its consolidation range with strong volumes.

We expect it to move towards Rs 98 and potentially higher, provided it holds above the crucial support level of Rs 82.

HCL Technologies: The stock has been consolidating over the past few sessions. The CNX IT index has shown an upward reversal, suggesting that IT stocks could regain leadership in the next phase of the rally.

HCL Technologies could move towards Rs 1,650, with the 20-day moving average near Rs 1,375 acting as support.

After the recent sharp rally, do you expect the Nifty 50 to consolidate or reclaim its record high soon?

The Nifty could enter a consolidation phase in the near term following its sharp recovery from the October 2026 lows.

We had forecast a major upward reversal towards the end of October based on a 55-day time-cycle indicator. The reversal was confirmed near 22,530, following which the index rallied nearly 2,500 points.

The pace of the rally has been unusually sharp. Investors should consider using dips or corrections as buying opportunities, provided the index does not close below the previous day's low. This is a simple trend-following approach.

Given the speed of the recovery, the Nifty could reclaim its previous lifetime high above 26,300 sooner rather than later.

However, the index is currently overbought, and some retracement would be healthy for sustaining the rally.

Sai Life Sciences surged 12% on Friday following its quarterly results. Are you still bullish on the stock?

Sai Life Sciences announced its quarterly results on November 5, following which the stock opened sharply higher and extended its gains to touch a fresh lifetime high of Rs 1,814.90.

The overall outlook remains bullish. However, after such a sharp rise, a minor pullback towards the previous swing zone of Rs 1,675–1,700 cannot be ruled out.

Such a correction could offer an opportunity to build positions, with key support around Rs 1,600.

We see potential for the stock to move towards Rs 1,980.

Does ICICI Bank remain an attractive investment opportunity, or has the recent rally made valuations less favourable?

ICICI Bank continues to offer an attractive investment opportunity from a technical perspective.

The stock has registered a strong bullish breakout above its previous resistance zone of Rs 1,480–1,500 and subsequently touched a fresh all-time high of Rs 1,571.

The breakout indicates strengthening bullish momentum and suggests further upside potential.

However, following the sharp 4.75% rally in the previous session, chasing the stock at elevated levels may not offer a favourable risk-reward ratio.

A buy-on-dips approach would be preferable, with the Rs 1,500–1,520 support zone offering a better entry opportunity.

We see the stock potentially moving towards Rs 2,000, with key support at Rs 1,440.

HDFC Bank has moved above its key moving averages and registered a trendline breakout. Does the technical setup suggest further gains?

Yes. HDFC Bank continues to show further upside potential following its trendline breakout and move above key moving averages.

However, investors should preferably adopt a buy-on-dips strategy rather than chase the stock at higher levels.

The Rs 740–760 zone is an important near-term support area. As long as the stock sustains above these levels, the path remains open for a move towards Rs 840.

Midcap and smallcap stocks have lagged the recent largecap rally. What is your outlook for the broader market?

The midcap and smallcap indices have each gained around 10% from their recent lows, compared with a 13% rise in the Nifty.

However, midcap and smallcap stocks had been outperforming largecaps for several months, and their earlier declines were relatively shallow.

The midcap index touched a lifetime high in August 2026, whereas the Nifty had not come close to its January 2026 record high.

The recent market movement reflects a shift away from higher-beta stocks towards largecaps, which had corrected more sharply and offered better risk-reward opportunities.

We expect the broader market to gradually catch up with the largecap rally.