Take it when you want a whole-army effect that gets stronger as the game goes on and you are happy to build around attrition rather than an alpha strike. Compared with Dread Talons, which shares the fear premise at the same 2 DP, Nightmare Hunt has four clauses instead of three and adds Hit and Wound bonuses on top of the Battle-shock pressure. It is the bigger detachment.
Be clear-eyed about the trade. It carries the NIGHTMARE tag, and so does Murdertalon Raiders, so the obvious 2 + 1 pairing with jump packs is illegal. If jump packs are your plan, take Dread Talons instead, which does a similar job with no tag. Nightmare Hunt is also slow to start: on turn one nothing is thinned and nothing is broken, so the rule does almost nothing until you have done damage.
Sample gameplan: spread Heretic Astartes units so the 12-inch bubble covers the midfield. Shoot to push a unit below half strength, then take the +1 to hit it on the following turn. Spend Horrific Incursion when something arrives from Reserves and Sadistic Display the moment you destroy a unit in melee. Put Greyveil Hex on the Chaos Lord holding your central objective and Terrorglut Parasite on whichever character is going to end up in Engagement Range.