Dussehra Special Top Picks

With the Dussehra festival season upon us, the time is ideal for looking into the top stock picks this month. Given the increased household spending in certain areas, some sectors are poised for better prospects than others. In addition to considering these Dussehra stock picks, you can also conduct your own research using the Samco trading app, which offers live insights into technical indicators and market prices for different stocks. 

Top Sectors and Stock Picks for the Dussehra Festival 2024

Here are the five sectors and stocks picks to watch out for this year, as the Dussehra celebrations continue in full fervour.

• Sector: Traditional Fashion

Dussehra season generally sees a surge in traditional wear purchases as people prepare for festivities. Families often buy new clothes to honour the occasion, driving sales for ethnic fashion brands. This cultural shopping spree makes traditional fashion stocks some of the top Dussehra picks.

• Stock Pick: Vedant Fashions Limited

Established in 2002, Vedant Fashions is a small-cap company that operates in the apparel industry, in the niche segment of traditional fashion. Known more popularly by its flagship brand name Manyavar, Vedant Fashions is on many traders’ radars this season. One of the top Dussehra stock picks, Vedant Fashions has a strong buy signal from many industry analysts and experts. 

The company’s shares are currently trading in the range of Rs. 1,310 to Rs. 1,320 (as of September 25, 2024), with a target price of Rs. 1,600. This ambitious target stems from the fact that the fashion company may be poised for tremendous growth in FY25.

• Sector: Jewellery

Dussehra also marks an auspicious time for buying gold and jewellery in Indian culture. Many consider it lucky to make precious metal purchases during this period. This could lead to a predictable spike in jewellery sales and make jewellery companies the top Dussehra stock picks among investors looking for short-term gains.

• Stock Pick: Titan Limited

Titan Limited, which was incorporated in 1984, is one of the leading jewellery companies listed in the Indian markets. The company predominantly operates in the gems and jewellery sector. As this year’s Dussehra festival approaches, Titan is among the top stock picks from the jewellery industry. 

Currently trading in the range of Rs. 3,730 to Rs. 3,750 (as of September 25, 2024), the company’s first trading target has been set at Rs. 3,968 and its second target at Rs. 4,156. The company’s potential upside stems from its upcoming business plans, which include the launch of around 100 IRTH stores across the country by FY27. 

IRTH is the company’s bag brand, which already has a strong presence in 50+ cities, thanks to its availability in large-format stores. By 2027, the company has set an ambitious topline target of around Rs. 600 crores. These factors all contribute to the market’s bullish view of the stock. With the festive season being a prime time to purchase and gift luxury jewellery, Titan Company is one of the top stocks to watch out for if you plan on trading online during this period.

• Sector: Food Delivery

Festive seasons in India often correlate with increased dining out and ordering in. Dussehra celebrations frequently involve family gatherings and feasts, which may boost orders for food delivery companies. This predictable uptick in consumer spending makes food delivery stocks appealing for those trading online during the Dussehra period.

• Stock Pick: Zomato Limited

Ever since its market debut in 2021, Zomato Limited has been in the news frequently for various reasons — some great and some not so much. In recent weeks, however, the food delivery giant has been on market experts’ radars because of its stellar growth. The company’s brand value has grown by 100%, hitting $3.5 billion in September 2024.

This growth can be traced back to the company’s expansion into the quick commerce zone and its consistent innovation in the food delivery segment. Its share price has also increased by a staggering 369% over the past couple of years. Interestingly, despite its steep rise, some experts believe there is room for further upside. 

The company’s shares are currently trading in the range of Rs. 280 to Rs. 290 (as of September 25, 2024), with the nearest support coming in at around Rs. 275. Experts project that if the company’s share price crosses the Rs. 295 mark, a target of Rs. 320 to Rs. 360 may be reasonable over the short term. As the food giant’s share price fluctuates, all eyes are on the bourses, making Zomato one of the potentially top stock picks this season.

• Sector: Consumer Finance

Dussehra heralds the start of the festive shopping season in India. Consumer finance companies capitalise on this by offering special festive loans and discounts that can help customers looking to make big-ticket purchases. This may result in a surge of new loans and increased revenue, making consumer finance a sector to watch for Dussehra picks.

• Stock Pick: Bajaj Finance Limited

A large-cap company that was established in 1987, Bajaj Finance is one of India’s leading NBFCs. Interestingly, in the last 19 years of its history of being traded online, the company recorded an intraday decline of over 5% only in 3.21% of its trading sessions. Currently trading in the range of Rs. 7,600 to Rs. 7,650 (as of September 25, 2024), this is also one of the top Dussehra stock picks for many traders and experts.

Historically famous for running various festive season offers to benefit consumers, Bajaj Finance has not disappointed this year either. With the Dussehra festival approaching, the consumer finance giant has announced special offers for anyone purchasing two-wheelers using the company’s vehicle financing products. In addition to potentially boosting the company’s share price, this may also have a favourable impact on the auto sector. 

The long-term prospects for Bajaj Finance are also mostly favourable. Although the company may not have any major plans in the pipeline yet, its stable financial performance has been a positive signal for investors. The company is also a part of the Bajaj Finance Group, which recently overtook the SBI Group to secure the position of the third most valued finance group in India.

• Sector: Travelling

Dussehra often kicks off a travel season as people visit family or take short vacations during the festive period. This is why stocks in the travel sector, particularly those related to Indian Railways, often see heightened activity — making them attractive prospects for investors focused on Dussehra festival trading.

• Stock Pick: IRCTC Limited

Listed in 2019, IRCTC has been traded online for the past 5 years. During this period, the company’s shares have seen many highs and lows. Volatility has been a hallmark of this Indian railway giant. Most recently, the company’s share price fell by 2.42% in the third week of September before bouncing back by 1.28% as the Nifty rose.

Experts anticipate that during the upcoming Dussehra festival season too, this company may witness rapid price changes, making it one of the top stock picks.  As of September 25, 2024, IRCTC has been trading around the Rs. 900 mark. Some analysts anticipate a bullish move in the coming days, with an upward target of around Rs. 940 and a stop-loss at Rs. 895. The unique thing about this stock is that it also has a sell call, with experts giving a downward target of Rs. 860 along with a stop-loss of Rs. 926.

Conclusion

The thing to remember about stock-picking ideas is that they are only guidelines or benchmarks. You need to perform additional research and form your own opinions about which stocks may be best for trading online during this period. What’s more, it’s not always easy to set a specific direction for the price movement.

For instance, IRCTC has both buy and sell targets in the coming days. In such cases, you can take one position in the spot market and an opposite position in the options market. Alternatively, you can use multi-legged options strategies to profit from movements in either direction.

For such complex trades, you need the help of advanced strategy builders like Samco’s Options B.R.O. This trading tool, integrated into the Samco trading app, helps you find the best strategies based on your market view. You can analyse each strategy thoroughly and even implement the trade directly from the Samco app.