Muhurat trading is related to the festival of Deepawali. As per the Hindu calendar, Diwali, the Festival of Lights, is a lucky occasion. It represents the success of goodness over wickedness, wisdom over stupidity, and light over darkness. So Let’s talk about it in detail & how to trade on this trading.
Table of Contents
What is Muhurat Trading?
Muhurat Trading is a prevalent practice among Indian traders. Muhurat meaning a one-hour window on Diwali day that is regarded as fortunate for stock investing. Annually, the stock market sets the timing for Muhurat trading. People who trade during this one hour, as per legend, have a higher chance of accumulating riches and prospering across the year.
Let’s have a look at the phrase Muhurat after addressing the question of what is Muhurat trading. The term ‘Muhurat’ refers to a favorable period of time. Muhurat is a Hindu term that refers to a time when the planets are in a favourable alignment, ensuring beneficial outcomes.
Important Points of Muhurat Trading Time
- All open positions at the end of the trading session will result in settlement requirements.
- Most traders and investors believe this period to be auspicious for making investments.
- On Diwali, the Muhurat trading session will take place, but the markets will be closed on Day After it on account of Diwali Balipratipada.
- Traders should pay attention to the resistance and support levels. It has been noted that during Muhurat trading sessions, the markets might be unpredictable and have no discernible direction.
- As a result, maintaining resistance and support levels at the forefront of your trading selections can help you make better trading decisions as a day trader.
How Muhurat Trading Started?
Historically, stockbrokers began their new year on Diwali day. As a result, on Diwali, at the fortunate season – the Muhurat – they would open fresh settlement accounts for their customers.
On Diwali, the brokerage community would hold Chopda Pujan, or worship of their books of accounts. Muhurat trade was linked with a variety of faiths.
The first was that most Marwari traders/investors sold equities during the Muhurat because they thought wealth should not enter the house during Diwali, whereas Gujarati traders/investors bought shares at this time.
While there is no evidence to support this, it is no longer true.
Muhurat Trading Nowadays
People feel the season is fortunate, thus Muhurat trade has become more of a symbolic act than a traditional one. Numerous Hindu investors do Lakshmi Pujan (prayer to Goddess Lakshmi) before investing in strong firms that can create high long-term profits.
Process of Muhurat Trading
After you understand what is muhurat trading, let look at the process. For a brief time on Diwali, both the NSE (National Stock Exchange) and the BSE (Bombay Stock Exchange) allow trading. The session is usually split into the following sections:
Block Deal Session
When two parties agree to purchase or sell a security at a predetermined price and notify the stock exchange, this is known as a block deal session.
Pre-Open Session
the stock exchange establishes the equilibrium price before the market opens (usually around eight minutes)
Normal Market Period
the one-hour session during which the majority of trading occurs.
Call Auction Session
which is where illiquid securities are exchanged. If a security meets the exchange’s requirements, it is classified as illiquid.
Closing Session
This is when traders and investors can place a market order at the previous day’s closing price.
Muhurat Trading Timing
Here is a quick look at the Muhurat Trading timing for both BSE and NSE:
| Muhurat Trading Session | Capital Market |
| Block Deal | 18:07 – 18:12 hours |
| Pre-Open | 18:00 – 18:06 hours |
| Normal Trading | 18:15 – 19:15 hours |
| Call Auction | 18:00 – 19:05 hours |
| Closing | 19:25 – 19:35 hours |
Advantages of Muhurat Trading
These are some major advantages of this Trading:
Trading Volumes
Because trading volumes are high during this trading session, it is an excellent opportunity to purchase or sell equities.
In addition, the market is generally bullish since the holiday atmosphere of prosperity and riches encourages individuals to be positive about the economy and the markets.
As a result, this trading session is an excellent time for both seasoned and novice investors and traders.
Investing for the First Time
Diwali is said to bring wealth and success to those who believe in fortunate cosmic alignments. As a result, if you’ve never traded in stocks before, Diwali could be an excellent time to start.
Look for high-quality businesses to invest in and buy some stocks with a long-term view and in line with your investing strategy.
Trading style
If you want to go into stock trading, though, it’s a good idea to watch the markets during this trading and do some paper trading to get a feel for how things work.
Because the trading window is only open for one hour, markets are known to be turbulent. As a result, being cautious as a beginning trader is advised.
Most investors/traders would purchase and/or sell stocks as a gesture to honour the ritual purity of the day, therefore skilled day traders might gain from this session.
Next Year Prediction
It’s possible that the emphasis isn’t so much on profit as it is on the gesture. As a result, experienced day traders may benefit handsomely by placing positions after thorough thought.
Since the epidemic wreaked havoc on companies and livelihoods, previous and this year has been a disaster for the economy.
While many experts predict a successful trading session in 2023, you should maintain your enthusiasm in your heart and use your mind to make trading judgments.
Notes:
- Before investing in specific shares for the long run, investors must ensure that they keep to the firm’s fundamentals. This trading period is generally quite exciting, and rumours may spread quickly. Keep it simple and invest in accordance with your investing strategy and risk tolerance.
- Because the trading window is only for one hour, pick equities with high trading volumes if you want to profit from the volatility.
- Investing at this time frame does not ensure a profit. Even if the stock does well on Diwali, the firm ‘s future success will be determined by its fundamentals and macroeconomic variables.
Conclusion
This is mostly a symbolic trading season. Hence, you cannot get many intraday opportunities so keep your views long term or positional if you wish to trade on this day.
This is all from our side regarding What is Muhurat Trading? Let us know your views in the comment section.
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Muhurat trading timings today?
Muhurat trading timings today will be 00:00 to 00:00 PM.
Muhurat Trading timings 2023
Muhurat Trading timings for 2023 is yet not decided by NSE & BSE.
Muhurat Trading 2023
Muhurat Trading is a prevalent practice among Indian traders. This is a one-hour window on Diwali day that is regarded as fortunate for stock investing. Annually, the stock market sets the timing for Muhurat trading. People who trade during this one hour, as per legend, have a higher chance of accumulating riches and prospering across the year.
Muhurat Trading NSE 2023
Muhurat Trading is a prevalent practice among Indian traders. This is a one-hour window on Diwali day that is regarded as fortunate for stock investing. However, timings are yet not decided by NSE.
Muhurat Trading Date 2023
Muhurat Trading Date 2023 is 16 November 2023. However, the timetable will be decided near to the date.
